Ministry of trade & commerce report 2013 14 by KhonjelOrg

Abbreviations

Abbreviation

Expansion

ABS

Access and Benefit Sharing

ACCs

Air Cargo Complexes

ACP

African-Caribbean-Pacific Group

ADA

Anti-Dumping Agreement

AED

Additional Excise Duty

AEZ

Agricultural Export Zones

AICTE

All India Council for Technical Education

AHMC

Assaying and Hallmarking Centre

AMS

Aggregate Measurement Support

AOA

Agreement on Agriculture

APCAEM

Asia and Pacific Centre for Agriculture and Engineering Machinery

APCICT

Asian & Pacific Training Centre for Information & Communications Technology for Development

APCTT

Asian and Pacific Centre for Transfer of Technology

APEDA

Agricultural and Processed Food Products Export Development Authority

APTA

Asia Pacific Trade Agreement

ASCM

Agreement on Subsidies and Countervailing Measures

ASEAN

Association of South East Asian Nations

ASIDE

Assistance to States for Development of Export Infrastructure and other Allied Activities

ATPF

Asia Trade Promotion Forum

BHLG

Bilateral High Level Group

BIFR

Board for Industrial & Financial Reconstruction

BIMSTEC

Bay of Bengal Initiative on Multi-Sectoral Technical and Economic Cooperation

BOA

Board of Approval

Annual Report 2013-14

BOT

Board of Trade

BRC

Bank Realization Certificate

BSMs

Buyer Seller Meets

BTP

Biotechnology Park

CAPEXIL

Chemicals and Allied Products Export Promotion Council

CBD

Convention on Biological Diversity

CCA

Chief Controller of Accounts

CCRI

Central Coffee Research Institute

CDM

Clean Development Management

CEC

Committee on Economic Cooperation

CECA

Comprehensive Economic Cooperation Agreement

CECPA

Comprehensive Economic Cooperation and Partnership Agreement

CENVAT

Central Value Added Tax

CEPA

Comprehensive Economic Partnership Agreement

CEPC

Cashew Export Promotion Council

CFC

Common Fund for Commodities

CFSs

Container Freight Stations

CHEMEXIL

Chemicals Export Promotion Council

CLE

Council for Leather Exports

CLRI

Central Leather Research Institute

COE

Committee of Experts

CoO

Certificate of Origin

COMESA

Common Market for Eastern and Southern Africa

CONCOR

Container Corporation Of India

COPU

Committee on Public Undertakings

CSM

Consortium of Shoe Manufacturers

CSP

Common Service Providers

CSR

Corporate Social Responsibility

CTS-SS

Council for Trade in Services- Special Session

DDA

Doha Development Agenda

DEPB

Duty Entitlement Passbook Scheme

Annual Report 2013-14

DES

Duty Exemption Scheme

DFCE

Duty Free Credit Entitlement

DFIA

Duty Free Import Authorization

DFQF

Duty Free Quota Free

DFRC

Duty Free Replenishment Certificate

DFTP

Duty Free Tariff Preference

DGAD

Directorate General of Anti-Dumping & Allied Duties

DGCI&S

Directorate General of Commercial Intelligence and Statistics

DGFT

Directorate General of Foreign Trade

DGS&D

Directorate General of Supplies and Disposal

DoC

Department of Commerce

DoNER

Department of North-East Region

DPR

Detailed Project Report

DSB

Dispute Settlement Body

DSU

Dispute Settlement Understanding

DTA

Domestic Tariff Area

DTR

Daily Trade Return

ECA

Economic Commission for Africa

ECGC

Export Credit Guarantee Corporation of India Limited

ECLA

Economic Commission For Latin America

ECR

Export Credit Refinance

EDF

Export Development Fund

EDI

Electronic Data Interchange

EEC

European Economic Community

EEPC

Engineering Export Promotion Council

EEZ

Exclusive Economic Zone

EFTA

European Free Trade Association

EHTP

Electronic Hardware Technology Park

EIAs

Export Inspection Agencies

EIC

Export Inspection Council

Export Obligation

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EOUs

Export Oriented Units

EPA

Economic Partnership Agreement

EPB

Export Promotion Board

EPCG

Export Promotion Capital Goods Scheme

EPCs

Export Promotion Councils

EPIPs

Export Promotion Industrial Parks

EPZ

Export Processing Zones

ESCAP

Economic and Social Commission for Asia and the Pacific

ESC

Electronics and Computer Software Export Promotion Council

European Union

EVCS

Executive Video Conference System

EXIM

Export-Import

FBT

Fringe Benefit Tax

FCV

Flue Cured Virginia Tobacco

FDDI

Footwear Design & Development Institute

FIEO

Federation of Indian Export Organizations

FMS

Focus Market Scheme

FOB

Free on Board

FPS

Focus Product Scheme

FSMSC

Food Safety Management Systems Based Certification

FTAs

Free Trade Agreements

FTP

Foreign Trade Policy

FTWZ

Free Trade Warehousing Zone

GAP

Good Agricultural Practices

GATT

General Agreement on Trade & Tariffs

GATS

General Agreement on Trade in Services

GCC

Gulf Cooperation Council

GCI

Growth Competitiveness Index

GDP

Gross Domestic Product

Geographical Indications

GJEPC

Gems & Jewellery Export Promotion Council

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GMO

Genetically Modified Organism

GRC

Grievance Redressal Committee

GSP

Generalized System of Preferences

GSTP

Global System of Trade Preferences

GST

Goods and Services Tax

GTL

Gem Testing Lab

HACCP

Hazard Analysis & Critical Control Points

HBP

Hand Book of Procedures

HKMD

HongKong Ministerial Declaration

HPLC

High Performance Liquid Chromatography

HRD

Human Resource Development

Harmonised System

HSD

High Speed Diesel

IAPTA

India Afghanistan Preferential Trade Agreement

IBEF

India Brand Equity Foundation

IBSA

India Brazil South Africa

ICA

Indian Council of Arbitration

ICAR

Indian Council of Agricultural Research

ICCR

Indian Council for Cultural Relations

ICDs

Inland Container Depots

ICEX

Indian Commodity Exchange

ICNRED

International Conference on Natural Rubber Extension and Development

ICO

International Coffee Organisation

ICP

Integrated Computerization Project

ICT

Information and Communications Technologies

ICTA

Indian Coffee Trade Association

IDI

Indian Diamond Institute

IDLS

Integrated Development of Leather Sector Scheme

IEC

Importer Exporter Code Number

IFDC

International Footwear Design Competition

IFC

Information and Facilitation Counter

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IGC

Inter-Governmental Commission

IIFT

Indian Institute of Foreign Trade

IIP

Indian Institute of Packaging

IITF

India International Trade Fair

ILDP

Integrated Leather Development Programme

IMC

Inter-Ministerial Committee

IMF

International Monetary Fund

INDEE

India Engineering Exhibition

IOPEPC

Indian Oil Seeds & Produce Export Promotion Council

IPQC

In-process Quality Control

IPRs

Intellectual Property Rights

IRDA

Insurance Regulatory and Development Authority

ISFTA

Indo SriLanka Free Trade Agreement

ISO

International Organization for Standardization

ITA

Inland Transport Assistance

ITC

International Trade Centre

ITPO

India Trade Promotion Organization

IULTCS

International Union of Leather Technologists and Chemists Societies

JBCs

Joint Business Councils

JCM

Joint Commission

JEC

Joint Economic Committee

JEG

Joint Economic Group

JSG

Joint Study Group

JTF

Joint Task Force

JWG

Joint Working Group

KPCS

Kimberley Process Certification Scheme

LAC

Latin American and Caribbean

LCSs

Land Customs Stations

LDCs

Least Developed Countries

LERIG

Leather Research Industry Get-Together

LMG

Like Minded Group

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LOI/LOP

Letters of Intent/Letters of Permission

LPI

Logistic Performance Index

LTFR

Less Than Full Reciprocity

MAI

Market Access Initiative

MDA

Marketing Development Assistance

MEP

Minimum Export Price

MFN

Most Favoured Nation

MLFPS

Market Linked Focus Products Scheme

MMTC

Minerals and Metals Trading Corporation

MODVAT

Modified Value Added Tax

MoP

Margin Of Preference

MPEDA

The Marine Products Export Development Authority

MRAs

Mutual Recognition Agreements

MSMEs

Micro, Small and Medium Enterprises

MSP

Minimum Support Price

MTPL

MMTC Transnational Pte. Ltd., Singapore

NABL

National Accreditation Board for Testing and Calibration Laboratories

NaCSA

National Centre for Sustainable Aquaculture

NAFTA

North America Free Trade Agreement

NAMA

Non Agricultural Market Access

NAV

Non Ad Valorem

NCTI

National Centre for Trade Information

NEIA

National Export Insurance Account

NETFISH

Network for Fish Quality Management and Sustainable Fishing

NFE

Net Foreign Exchange

NGR

Negotiating Group on Rules

NPOP

National Programme for Organic Production

NRCP

National Residue Control Plan

NTBs/NTMs

Non-Tariff Barriers/ Non-Tariff Measures

Orthopaedically Handicapped

OECD

Organisation for Economic Co-operation and Development

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OLIC

Official Language Implementation Committee

OTDS

Overall Trade-distorting Domestic Support

PAI

Personal Accident Insurance

PBT

Profit Before Tax

PCS

Port Community System

PEC

Projects and Equipment Corporation of India

PEPC

Project Exports Promotion Council

PHARMEXCIL

Pharmaceuticals Export Promotion Council

PIC

Prior Informed Consent

PIS

Priced Information System

PIU

Project Implementing Unit

PLSDP

Placement Linked Skill Development Programme

POL

Petroleum, Oil and Lubricants

PPP

Public –Private Partnership

PSAG

Private Sector Advisory Group

PSF

Price Stabilization Fund Scheme

PSUs

Public Sector Undertakings

PTA

Preferential Trade Agreement

PWDs

Persons with Disabilities

QUPD

Quality Upgradation and Product Diversification

RBI

Reserve Bank of India

RCMC

Registration Cum Membership Certificate

REACH

Registration, Evaluation and Authorization of Chemicals

RFD

Results Framework Document

RGCA

Rajeev Gandhi Centre for Aquaculture

RMG

Readymade Garments

RPSs

Rubber Producers’ Societies

RRII

Rubber Research Institute of India

RTAs

Regional Trade Agreements

RTI

Right to Information

S&D

Special and Differential

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SAARC

South Asian Association for Regional Cooperation

SACU

Southern African Customs Union

SAD

Special Additional Duty

SAFTA

South Asian Free Trade Area

SAPTA

SAARC Preferential Trading Arrangement

SCOPE-AIR

Standing Committee on Promotion of Exports by Air

SCOPESHIPPING

Standing Committee on Promotion of Exports by Sea

SEPC

Services Export Promotion Council

SEPs

Sensitive Products

SEZ

Special Economic Zone

SHGs

Self Help Groups

SHEFEXIL

Shellac and Forest Products Export Promotion Council

SIAP

Statistical Institute for Asia and Pacific

SION

Standard Input Output Norms

SLEPC

State Level Export Promotion Committee

SMART

Society for Marketing of Rural Artisan Products

SPs

Special Products

SPS

Sanitary & Phyto-Sanitary Measures

SSM

Special Safeguard Mechanism

STC

State Trading Corporation of India Limited

STCL

Spices Trading Corporation Ltd

STP

Software Technology Park

SVJDM

Sardar Vallabhbhai Patel Centre of Jewellery Design and Manufacture

TBT

Technical Barriers To Trade

TDA

Trade Development Authority

TED

Terminal Excise Duty

TEF

Trade and Economic Framework

TEPC

Telecom Equipment & Services Export Promotion Council

TFAI

Trade Fair Authority of India

TIDP

Trade & Investment Development Programme

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TLP

Tariff Liberalization Programme

Traditional Knowledge

TPF

Trade Policy Forum

TPS

Target Plus Scheme

TRA

Tea Research Association

TRAINS

Trade Analysis and Information System

TRIPS

Trade Related Intellectual Property Rights

TRQs

Tariff Rate Quotas

TSR

Technically Specified Rubber

Tappers Training

TUSMP

Technology Upgradation Scheme for Marine Products

UPASI-TRF

United Plantersâ&#x20AC;&#x2122; Association of Southern India- Tea Research Foundation

USIBC

US-India Business Council

VHT

Vapour Heat Treatment

VKGUY

VisheshKrishi and Gram Udyog Yojna

WANA

West Asia and North Africa

WBTPO

West Bengal Trade Promotion Organization

WEF

World Economic Forum

WEMS

Web Enabled Monitoring System

WPDR

Working Party on Domestic Regulations

WTPF

World Trade Point Federation

Annual Report 2013-14

Overview Introduction

Global trade growth has reduced from 2.3% in 2012 to 2.1% in 2013. The WTO as per the April, 2014 Outlook, predicts a growth of 4.7% for 2014 and 5.3% in 2015, but conditions for improved trade are gradually falling into place. India’s merchandise exports reached a level of US$ 312.61 billion during 201314 (P) registering a growth of 4.1 percent as compared to a negative growth of 1.8 percent during the previous year. Despite the setback faced by India’s export sector due to the global slowdown, merchandise exports recorded a Compound Annual Growth Rate (CAGR) of 15 percent from 2009-10 to 2013-14 (P).

Annual Report 2013-14

Vision and Mission of DOC The basic role of the Department of Commerce is to facilitate the creation of an enabling environment and infrastructure for accelerated growth of exports. The mandate of the Department is the regulation, development and promotion of India’s international trade and commerce through the formulation and implementation of appropriate international trade and commercial policy. Foreign Trade Policy The 2% Interest subvention scheme was earlier available only to Handlooms, Handicrafts, SMEs and carpets. In June 2012, it had been extended to labor intensive sectors, namely, Toys, sports goods, processed agricultural products, and readymade

overview

The year 2013-14 was in many ways a year full of challenges and opportunities for us. A series of international events had a major impact on our economy. Most of the world economies struggled to emerge out of the financial crisis. While the global environment still remains challenging, policy action in India has been repositioned so as to better tackle the negative impact of external shocks. The growth momentum and export competitiveness has picked up as government has instilled greater confidence among businesses. The improved outlook and proactive policy environment will help boost exports and bring India on the trajectory of greater economic growth.

There is an increasing shift in India’s trade from conventional destinations i.e. the US and EU towards South Asia, ASEAN, Africa and Latin America. During 2013-14, India’s exports with South Asia stood at US $ 17.33 billion; with ASEAN at US $ 33.18 billion, with Africa US $ 31.23 billion and with Latin America at US $ 10.18 billion. The expansion of our trade basket and diversification of our markets will be a priority to improve the balance of trade. Export expansion needs to be accompanied by contraction in some of the high volume high value imports that display inelastic demand.

India Trade Story

US $ Billion

Merchandise Trade 490.7

489.3 369.8 303.7

288.4

185.3

178.8

2008-2009

2009-2010

251.1

450.1

306.0

300.4

312.6

2011-2012

2012-2013

2013-2014

63.8 78.1

2003-2004

2010-2011 Exports

Imports

overview

Source: DGCIS database

US $ Billion

Services Trade 151.5

145.7

142.3 124.6 106.0

96.0 80.6 52.0

26.9

78.2

80.8

78.5

60.0

16.7

2003-04

2008-09

2009-10

2010-11 Exports

2011-12

2012-13

2013-14(P)

Imports

Source: RBI

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garments, in addition to the four sectors benefitting from the scheme earlier. With effect from 1st January, 2013, the scheme was extended to 134 sub-sections of engineering sector. The validity of the scheme was also extended till March 31, 2014. The scheme has been further widened to cover 101 tariff lines of Engineering sector and 6 tariff lines of Chapter 63 of ITC(HS) (Textiles Made ups) w.e.f. 1st April, 2013. Further, Government has enhanced the rate of subvention from 2% to 3% with effect from 1st August, 2013.

Achievements New Expanded Duty Free Tariff A Preference (DFTP) Scheme for Least Developed Countries (LDCs)

One of the elements of the Hong-Kong Ministerial Declaration of December 2005 was to extend Duty Free Quota Free (DFQF) access to the Least Developed Countries (LDCs). India was the first developing country to extend this facility to LDCs. India’s Duty Free Tariff Preference (DFTP) Scheme for LDCs came into effect in August, 2008 with 85% of India’s total tariff lines made duty free, 9% tariff lines enjoying a Margin of Preference ranging from 10% to 100% and only 6% of total tariff lines retained in the Exclusion List with no duty preferences, for the exports from LDCs.

This year, the Cabinet has approved an increase in coverage as well as simplification of the Scheme, in line with both the Hong Kong Ministerial mandate as well as requests from several LDCs (eg., Tanzania, Uganda and Ethiopia) for additional product coverage under the duty free list to cover products of their export interest and for simplification of the Rules of Origin procedures.

The new and expanded DFTP Scheme would provide improved market access to the 28 beneficiary countries as well as to new entrants, such as the Republic of Yemen and Haiti. This initiative by India would strengthen the country’s position in the WTO on issues relating to LDCs and is expected to send a strong signal to major developed countries which are yet to comply with the Hong Kong

Zero duty EPCG Scheme and concessional 3% duty EPCG scheme were harmonized and w.e.f. 18.4.2003 there is just zero duty EPCG scheme for all products/services. Duty credit scrips issued under Focus Product Scheme (FPS), Focus Market Schemes (FMS) and Vishesh Krishi and Gram Udyog Yojna (VKGUY) can be used for payment of Service Tax. A new scheme namely, the Incremental Export Incentivisation scheme has been introduced w.e.f 1.1.2013 whereby exports made during the period January-March 2013 over the base period January-March 2012 would be eligible for these benefits. The above scheme was extended for 2013-14 also on an annual basis. The Foreign Trade Policy 2014-19 will be announced by the new Government and in the interim, the existing policy (200914) is continuing. The exercise for drafting the new FTP is under way and stakeholder consultations with Export Promotion Councils and Chambers of Commerce have started. Some of the existing export promotion schemes may be restructured based on the feedback.

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overview

•

especially the fact that India is emerging as the `pharmacy of the world’ and as a reliable supplier of authentic, quality, safe and affordable drugs, resulted in a campaign by certain vested interests to brand generic medicines of India as sub-standard, spurious / fake. It was in this context that Department of Commerce took the initiative of proposing technological solutions for tracing and tracking the `Made in India’ drugs in the global market. Extensive consultations were held with the industry and concerned departments and it was decided that trace and track features need to be incorporated on all medicinal products being manufactured and exported from India as a measure to build better image and credibility of Indian pharma products.

Ministerial mandate to adopt similar measures.

overview

•

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The Plantation Sector comprising tea, spices and rubber is important to India’s economy given the livelihood concerns of a large number of people employed in the industry. Tea and Spices are the brand ambassadors of `India’. This has been a remarkable year for India in terms of taking the lead at international commodity bodies in pursuing the producers’ interests in the tea, spices and coffee sectors. The Union Cabinet has approved India’s joining the International Tea Producers Forum as a founder member. India has been elected as the Chair of International Coffee Organization Council. India has also succeeded in getting a Codex Committee on Spices and Culinary Herbs (CCSCH) formed by the Codex Alimentarius Commission, which would harmonize quality parameters for spices, across the globe and help our exports. These are significant steps in achieving a commanding place in world trade in these sectors and thereby protecting the interests of lakhs of growers. To sustain and accelerate the growth rate of engineering exports, the Department of Commerce has launched a strategic brand promotion of engineering goods in coordination with IBEF and EEPC. Since the Engineering Sector covers a large span of the products, based on the core strengths, in the initial phase, machine tools and the Pump and Valves sector have been identified for this exercise. The increasing competence of Indian pharma in the global market place

•

A major initiative has been taken by the Government through eTRADE Project which aims to facilitate Export and import clearances in online environment and by integrating international standards and best practices. This is a community project covering trade regulatory and facilitating agencies such as Customs, Directorate General of Foreign Trade (DGFT), Sea Ports, Airports, ICSs/ CFSs, Exporters, Importers, Agents and Banks. The project facilitates electronic delivery of services like document filing and clearances, e-Payments integration etc. The Government will pursue this initiative vigorously as part of its ongoing trade facilitation efforts to support the thrust on export promotion.

Export Promotion •

In the last few years, India’s current account deficit has been under pressure

Annual Report 2013-14

Services Exports The Services sector has been a major force in driving growth in the Indian economy for more than a decade. Services contribute around 60% to the GDP of the country, 35% to employment, 25% to total trade, around 40% to exports, 20% to imports and account for more than 50% of FDI into the country. Increasing surplus from services trade over the whole of the last decade has helped to offset a major part of the deficit accruing from the merchandise side, and thereby helped to keep a check on the Current Account Deficit (CAD). India recorded a merchandise trade deficit of US$ 137.45 billion in 2013-14. Total export of services was US$ 151.4 billion in 2013-14 and the net export of services was US $ 72.9

Annual Report 2013-14

bn. Out of US $ 72.9 billion of net exports in services, around US$ 66.9 billion comes from net software services exports alone. Services exports from India have been growing rapidly, increasing from US$ 96 billion in 2009-10 to US$ 151.4 billion in 2013-14 with a CAGR of 9.5%. However, in the sphere of IT/ITES services India is slowly losing its competitive edge on account of competition from other countries such as Vietnam, Mexico, Turkey and Philippines. The role of Software Technology Parks (STPs) and SEZs in making IT/ITES services competitive, has been critical. Income tax benefits under sections 10A and 10B were available to undertakings in STPs and EOUs only till 31 March 2011. Today nearly 60% of the operational SEZs are in the IT/ITES sector. There is an urgent need for restoring their benefits to keep the IT/ITES sector competitive. There is also a strong demand from the IT industry for greater clarity on their taxation issues including transfer pricing norms. There is also great scope for increasing exports in the sphere of Business, Professional, Tourism and Medical Services. India can be developed as a ‘hub’ for cardiac, ophthalmic, orthopaedic surgery and other related medical services especially for patients from South Asia, Middle East and other advanced countries. This would require easing the visa regime by providing visa on arrival and multiple entry visas to the patients, covering hospitals under Served from India Scheme to make them eligible for export incentives on the basis of foreign exchange earned and reforms in health insurance including portability etc.

overview

and several measures were taken to manage it. The Foreign Trade Policy for 2014-19 which the Government will announce very soon looks at long-term measures to address the situation. The new policy will build upon India’s strengths, focus on export of manufacturing and value added products and improving the competitiveness of agricultural products. Developing the capacity for defence and technology intensive exports is another area that will receive Government’s attention. A stable tax regime and stable foreign exchange rate will be necessary to support an aggressive export strategy. It is also proposed to establish an Export Promotion Mission to bring all the stakeholders under one umbrella. States will be made partners in the country’s export promotion efforts.

Trade Infrastructure and Trade Facilitation

overview

•

An efficient infrastructure is necessary to support the thrust in exports that is sought to be achieved under the new Foreign Trade Policy. Government will endeavour to build a network of world class ports, air cargo facilities, road and railways. Government’s scheme to support creation of infrastructure at the Centre and State level called ‘Assistance to States for Infrastructure Development for Exports’ (ASIDE) has made an important contribution and Government proposes to continue and upscale it. EDI connectivity has to be extended to all the ports in the country. As far as possible, exporters would be enabled faster clearance through a single window mechanism. The reduction in transaction costs will go a long way in making our exports more competitive. A Committee on Reducing Transaction Costs has submitted its report and its recommendations are under active consideration of the Government and will be included in the Foreign Trade Policy. Similarly, harmonisation of domestic standards with global practices will be necessary for addressing non tariff barriers.

Electronic Data Connectivity

Interchange

(EDI)

EDI connectivity has improved in the context of merchandise trade data: •

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Exports: In 2013-14(P), 65.2% of the total value of trade was through EDI, 34.4% was through Non-EDI and 0.42% was through manual as compared to 58.2% through EDI, 30.09% through Non-EDI and 11.7% manual in 2009-10.

•

Imports: In 2013-14(P), 72.41% of the total value of trade was through EDI, 27.3% was through Non-EDI and 0.26% was manual as compared to 65.8% through EDI, 12.5% through Non-EDI and 21.8% through manual in 2009-10.

•

Reducing delay in data transmission-this will require:

– Increasing the coverage of EDI ports by converting manual and non EDI ports into EDI ports – Data relating to manual clearance from EDI ports captured and transmitted in EDI mode

Recent developments in the World Trade Organisation (WTO) negotiations The Doha Round of trade negotiations is continuing in the WTO since the year 2001. After protracted negotiations yielding little results for almost a decade, consensus was reached to negotiate a small package consisting of Trade Facilitation, some elements of agriculture and development/ LDC issues for an early outcome in the Ninth Ministerial Conference of the WTO held in December 2013 in Bali, Indonesia. The Bali outcome consists of an agreement on Trade Facilitation and Ministerial decisions on some elements of agriculture and development/LDC issues. In the area of agriculture, which is very important for the developing countries, the proposal submitted by G-33, a group of developing countries in the WTO relates to updating the rules concerning public stockholding for food security. The Ministers approved an interim mechanism, until a

Annual Report 2013-14

permanent solution is found to enable the developing countries meet this policy objective subject to some notification and transparency provisions. The interim mechanism stipulates that WTO Members will not challenge the compliance of a developing member with obligations under the WTO Agreement on Agriculture in relation to support provided for traditional staple food crops in pursuance of public stockholding programmes for food security purposes, if they are consistent with the existing rules. A permanent solution has to be negotiated for adoption by the 11th Ministerial Conference.

Status of India's RTAs/FTAs India has always stood for an open, equitable, predictable, non-discriminatory and rule based international trading system. India views Regional Trading Arrangements, as 'building blocks' towards the overall objective of trade liberalisation which should complement the multilateral trading system. Therefore, India is actively engaging in regional and bilateral negotiations with various countries/ blocs to diversify and expand the markets for exports. So far, India has signed 10 FTAs and 5 Preferential Trade Agreements (PTAs) and these FTAs/PTAs are already in force. Further, India is currently negotiating 17 FTAs, including review/expansion of some of the existing FTAs/PTAs.

Ten Free Trade Agreements (FTAs) with Sri Lanka (March, 2000)

SAFTA (January, 2006)

Nepal (March, 2007)

Bhutan (July, 2006)

Thailand (September, 2004)

Singapore (June, 2005)

ASEAN (January, 2010)

South Korea (January, 2010)

Japan (August, 2011)

Malaysia (August, 2011)

Five Preferential Trade Agreements (PTAs) with Asia Pacific Trade Global System of Agreement (APTA) Trade Preferences (November, 1976) (GSTP) (April, 1989)

Afghanistan (May, 2003)

Special Economic Zones â&#x20AC;˘

Special Economic Zones (SEZs) in India have been a very important vehicle for

Annual Report 2013-14

Mercosur (June, 2009)

Chile (September, 2007)

export growth, earning valuable foreign exchange, generating employment and having multiplier effects on the

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overview

The agreement on trade facilitation is aimed at simplifying customs procedures by reducing costs and improving their speed and efficiency. It will be a legally binding agreement. The objectives are: to speed up customs procedures; make trade easier, faster and cheaper; provide clarity, efficiency and transparency; reduce bureaucracy and corruption, and use technological advances.

It also has provisions on goods in transit, an issue particularly of interest to landlocked countries seeking to trade through ports in neighbouring countries.

economy. During 2013-14, exports from SEZs touched the level of about US $ 82.35 billion, employing about 12.83 lakh people. To revive investors’ interest in the SEZs some easing of SEZ Rules was undertaken in 2013, but more needs to be done on the fiscal incentives. The exemption from Minimum Alternate Tax (MAT) and Dividend Distribution Tax (DDT) need to be restored to re-vitalise the SEZs in the country.

overview

Market Access Initiative (MAI) Scheme Market Access Initiative (MAI) Scheme is a Plan scheme formulated to act as a catalyst to promote India's exports on a sustained basis, based upon 'focus product' and 'focus market' concept. Under the scheme, assistance is extended to the Departments of Central Government and organizations of Central/ State Governments, Export Promotion Councils, Registered Trade Promotion organizations, Commodity Boards, recognized Apex Trade Bodies and Recognized Industrial Clusters and individual Exporters (only for product registration and testing charges for engineering/Pharmaceuticals products abroad). The scheme was thoroughly reviewed and extensive consultations were held with all the stake holders in 2006 and a revised Scheme was launched with effect from January, 2007. The following activities are eligible for financial assistance under the scheme:

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i. ii. iii. iv. v.

Marketing Projects Abroad Capacity Building Support for Statutory Compliance Studies Projects Development

vi. Miscellaneous activities like developing Foreign Trade Web Portal etc.

Market Development Assistance (MDA) Scheme To facilitate various measures being undertaken to stimulate and diversify the country's export trade, a Market Development Assistance (MDA) Scheme is under operation through the Department of Commerce. The Scheme supports the following export promotion activities: •

Assistance to exporters for their participation in approved EPC/Trade Promotion Organization led export promotion events abroad.

•

Assistance to Export Promotion Council (EPCs) to undertake export promotion activities for their product(s) and commodities.

•

Assistance to approved organization/ trade bodies in undertaking exclusive nonrecurring innovative activities connected with export promotion efforts for their members.

•

Assistance to Focus export promotion programmes in specific regions abroad like Focus (LAC), Focus (AFRICA), Focus (CIS) and Focus (ASEAN +2).

•

Residual essential activities connected with marketing promotion efforts abroad.

Focus Areas •

India has always stood for an open, equitable, predictable, nondiscriminatory and rule based international trading system. Recognizing

Annual Report 2013-14

•

The Government proposes to continue its proactive engagement with countries in the neighbourhood and beyond to strengthen trade and economic relations. India’s exports to SAARC countries have doubled in the last five years. Digitization of foreign trade procedures and large scale use of IT has contributed significantly in reducing transaction cost and promoting trade with our neighbours. A comprehensive road map has been developed bilaterally between India and Pakistan, sincere efforts on both sides will pay rich dividends. India has developed a multi faceted relationship with ASEAN countries. The India ASEAN Free Trade Agreement (FTA) was signed in 2009 and the India ASEAN Agreement on Trade in Investment and Services was concluded in December 2012. These agreements have strengthened the business and

Annual Report 2013-14

commerce relations between ASEAN and India. We also have India Singapore Comprehensive Economic Cooperation Agreement (CECA) since 2005 and India Malaysia CECA since 2011 which have boosted bilateral trade between the two countries. The Government seeks to promote its engagement with East and South East Asia which have grown steadily in the last two decades. With this in mind, India is also participating in negotiations for Regional Comprehensive Economic Partnership (RCEP) between ASEAN and its six FTA partners to create a new trading block in the region. •

Project exports will get greater attention from the Government, specially to Africa, West Asia, CIS countries, ASEAN and Cambodia, Laos, Myanmar and Vietnam.

•

Government will also strategise global trade engagements to conclude trade pacts, where negotiations are in various advance stages, such as with EU, PERU/ Columbia, COMESA/ECOWAS, RCEP, MERCOSUR, Russia, China, US.

•

Streamline Processes Transaction Costs

This is a priority for the private sector and DoC is working on a set of recommendations which need to be implemented rapidly. These include:

 Integration of e-BRCs between DGFT and Customs CBEC.  Making all ports with annual exports more than Rs.50 crore EDI connected.  Message Exchange with Customs for all schemes of DGFT.

Reduce

xix

overview

that Regional Trading Agreements (RTAs) would continue to feature permanently in world trade, India has engaged with its trading partners / blocs with the intention of expanding its export market since early part of the previous decade and began concluding, in principle agreements to move, in some cases, towards Comprehensive Economic Cooperation Agreements (CECA) which covers FTA in goods (i.e. having a zero customs duty regime within a fixed time frame on items covering substantial trade and a relatively small negative list of sensitive items on which no or limited duty concessions are available), services, investment and identified areas of economic cooperation.

overview

 Ensure 24x7 operations of ports and land custom stations by providing adequate facilities like customs clearance round the clock.

•

Preserving Competitiveness of Key Sectors

Certain developing countries like India have been able to give export subsidies as per the WTO agreements. This is a special provision which will soon expire as our per capita income and share in exports will cross the relevant benchmarks. This will affect our exports of textiles, gems & jewellery and fruits & vegetables which form about 23 percent of our exports. To maintain the competitiveness of these sectors we need to institute a special subsidy scheme.

•

Promoting Hi-Tech Exports

The global exports of hi-tech sector are largely dominated by electronics and pharmaceuticals, which together constitute 80 per cent of world hitech exports. The country’s potential in technology oriented manufacturing exports is yet to witness its full potential. Pharmaceuticals and electronic goods sectors dominate exports of hi-tech products from India with the share of electronics in hi-tech exports almost doubling during the period 2007 and 2011. Strategies for increasing technology based exports would include capacity enhancement, special subvention financing package, tax incentives for

investments in hi-tech products, financial assistance to set up world class hi-tech clusters and a well drafted production subsidy scheme along with an open regime for foreign direct investment to get investments & technology. •

Export Credit

This needs to be included as priority sector lending for all commercial banks to ensure adequate availability of credit to exporters.

•

Infrastructure

Improvement in port and laboratory infrastructure as well as setting up of common facility centres for increasing value addition in traditional exports such as, handicrafts, textiles, gems & jewellery, leather etc. will go a long way in increasing exports and enhancing employment.

•

Improving Production Standards and Building Brand India

A mandatory standards regime if implemented, not only protects consumers but also raises the quality of merchandise produced which in turn raises the capacity to export to discerning markets. This together with promotion of our traditional brands of goods like tea, spices, ayurvedic products and services like, yoga, wellness and health care as valued Indian brands can lead to greater value addition and export realization.

Annual Report 2013-14

Role, Functions, Organizational Structure, Strategic Initiatives & Priorities

Mandate

Vision and Mission Make India a significant player in world trade by 2020. Obtain market access for our exports by negotiating multilateral, bilateral and regional trade agreements. Promote and diversify exports through Plan schemes, policies and strategies. Assume role of leadership in international trade organizations.

Functions The Department formulates, implements and monitors the Foreign Trade Policy (FTP) which provides the basic framework of policy and strategy to be followed for promoting exports and trade. The Trade Policy is periodically reviewed to incorporate changes necessary to take care of emerging economic scenarios both in the domestic and international economy. Besides, the Department is also entrusted with responsibilities relating to multilateral and bilateral commercial relations, Special Economic Zones, state trading, export promotion and trade facilitation, and development and regulation of certain export

Annual Report 2013-14

The Department is headed by a Secretary who is assisted by an Additional Secretary & Financial Adviser, four Additional Secretaries, twelve Joint Secretaries and Joint Secretary level officers and a number of other senior officers. The Department is functionally organized into the following eight Divisions: 1. 2. 3. 4. 5. 6. 7. 8.

Administration and General Finance Division Economic Division Trade Policy Division Foreign Trade Territorial Divisions State Trading & Infrastructure Division Supply Division Plantation Division.

The various offices / organizations under the administrative control of the Department are: (A) three Attached Offices, (B) ten Subordinate Offices, (C) ten Autonomous Bodies, (D) five Public Sector Undertakings, (E) two Advisory Bodies, (F) fourteen Export Promotion Councils and (G) five Other Organizations. A complete list of these offices/ organizations along with the postal addresses is given at Annexure 1.2.

Role, Functions, Organizational Structure, Strategic Initiatives & Priorities

Development and Promotion of Indiaâ&#x20AC;&#x2122;s International trade and commerce through formulation of appropriate policy and implementation of various provisions thereof.

oriented industries and commodities. Work allocated to the Department, in accordance with the Allocation of Business Rules, 1961, is placed at Annexure1.1.

Strategic Initiatives and Priorities

Chapter-1

The key strategic initiatives to achieve the aspirations have been formulated on the basis of the critical assessment of our strengths, weaknesses, opportunities and challenges facing the Indian economy and the export sector. These are based on a series of discussions within the Department and consultation with stake holders i.e. premier industry organizations and Export Promotion Councils and expected trends of growth in world economy and trade. The important initiatives include •

Diversification of export product basket

•

Diversification into non-traditional markets and conclusion of ongoing FTA negotiations and initiating new FTAs

•

Strengthening infrastructure

export

•

Enhancing credit flows for exports at lower cost

•

Reducing Transaction Costs

•

Diversification of Services exports

•

Building up a Brand Image of India

•

Support to Plantation Sector

•

Protection to sensitive domestic industries

The broad organizational set up and major role and functions of the offices / organizations under the administrative control of the Department are discussed below: (A) Attached Offices (i) Directorate General of Foreign Trade (DGFT) Directorate General of Foreign Trade (DGFT) organisation is an attached office of the

Ministry of Commerce and Industry and is headed by Director General of Foreign Trade. Right from its inception till 1991, when liberalization in the economic policies of the Government took place, this organization has been essentially involved in the regulation and promotion of foreign trade through regulation. Keeping in line with liberalization and globalization and the overall objective of increasing of exports, DGFT has since been assigned the role of “facilitator”. The shift was from prohibition and control of imports/ exports to promotion and facilitation of exports/imports, keeping in view the interests of the country. Organisational Set-up This Directorate, with headquarters at New Delhi, is headed by the Director General of Foreign Trade. It is responsible for implementing the Foreign Trade Policy with the main objective of promoting India’s exports. The DGFT also issues licenses to exporters and monitors their corresponding obligations through a network of 36 regional offices and an extension counter at Indore. The regional offices are located at the following places:S. No.

Regional Office

S. No.

Regional Office

Ahmedabad

Amritsar

Bengaluru

Bhopal

Chandigarh

Chennai

Coimbatore

Cuttack

Dehradun

10.

Ernakulam (Kochi)

11.

Guwahati

12.

Hyderabad

13.

Jaipur

14.

Jammu

15.

Kanpur

16.

Kolkata

17.

Ludhiana

18.

Madurai

Annual Report 2013-14

Moradabad

20.

Mumbai

21.

Nagpur

22.

New Delhi

23.

Panaji (Goa)

24.

Panipat

25.

Patna

26.

Puducherry

27.

Pune

28.

Raipur

29.

Rajkot

30.

Shillong

31.

Srinagar

32.

Surat

33.

Thiruvananthapuram 34.

Varanasi

35.

Visakhapatnam

Vadodara

36.

All regional offices provide facilitation to exporters in regard to developments in international trade, i.e. WTO agreements, Rules of Origin and anti-dumping issues, etc. to help exporters in their import and export decisions in an internationally dynamic environment. (ii) Directorate General of Supplies and Disposals (DGS&D) The DGS&D, with headquarter at New Delhi, is headed by a Director General. It functions as the executive arm of the Supply Division of the Department of Commerce for conclusion of Rate Contracts for common user items, procurement of stores, consultancy etc. It has five Regional Supply Offices located at Chennai, Mumbai, New Delhi, Hyderabad and Kolkata. The functions of DGS&D are carried out through its functional wings & supporting service wings. The functional wings are the Supply Wing and the Quality Assurance wing. The supporting service wing includes Administration, Vigilance, Complaints and Public Relations, Planning and Co-ordination, Internal Work Study, Management Information Services, Litigation& M.I.C., etc. The Supply Wing has commodity-wise Purchase Directorates such as Information

Annual Report 2013-14

Technology, Electrical Stores, Mechanical Engineering, Automobiles, Steel & Cement, Structural Engineering, Hardware, Workshop & Machine Tools, Wool & Leather, Paper & Paper products, Oil & Chemicals. The handling of commodity wise work facilitates maintenance of a data bank on prices, vendors, specifications, market trends, etc. At present, DGS&D deals with 179 valid R/C (Rate Contract) items. Due to reduction in the quantum of inspection work in some sub-regional offices, Q.A. wing offices at Jabalpur, Patna, Cuttack, Bokaro and Tirupur Sub-centres have been closed down during the year. There are 24 outlying offices, out of which 20 Offices/ Sub-centers are Quality Assurance Wing (including Headquarters) spread all over the country. DGS&D e-Procurement Project The DGS&D has developed a comprehensive e-procurement package encompassing every aspect of its procurement activity. Implemented through NIC by a customised web-based application software, the package is nationally operated involving DGS&D HQrs, its four regional offices and twenty field offices. DGS&Dâ&#x20AC;&#x2122;s e-Procurement Application is accessed by around 3,000 Central Government users through exclusive user IDs and passwords for online placement of Supply Orders against Rate Contracts. Packages have already been developed and implemented for Registration of Vendors, Store coding, Pre bid Meetings, Finalization of specifications (Technical Particulars), Issue of Tender Notice/ Tender enquiry, Bid submission/ Bid opening/ Evaluation of Bids for common generalized items, Award of Rate Contracts, Supply Order, Inspection Notes,

Role, Functions, Organizational Structure, Strategic Initiatives & Priorities

19.

Dispatch Details by Vendors, Receipt Details by Consignees, Bill submission, etc. The project has increased transparency, improved efficiency and instilled confidence among stake holders in the procurement processes and is expected to bring in significant savings to the exchequer by developing a fully net-worked environment where all the tendering and rate contracting work will be done online/electronically through a web enabled software.

The Directorate General of Anti-Dumping & Allied Duties was constituted in April, 1998 and is headed by the Designated Authority of the level of Additional Secretary/Joint Secretary to the Government of India who is assisted by an Adviser (Cost). In addition, there are fifteen Investigating and Costing Officers to conduct investigations. The Directorate is responsible for carrying out investigations and recommending, where

From 1992 till 30.11.2013, DGAD initiated anti-dumping investigations into 295 cases. The countries prominently figuring in antidumping investigations are China, European Union, Taiwan, Korea, Japan, USA, Singapore, Russia, etc. The major product categories on which anti-dumping duty has been levied are chemicals and petrochemicals, pharmaceuticals, fibres/yarns, steel and other metals and consumer goods. Till November, 2013, DGAD has initiated 676 investigations on imports from various countries. The details of such investigations are shown in graph given below : DGAD has brought out publications on Antidumping Guidelines, Application Proforma, Exporter/Importer Questionnaires and a user-friendly booklet on Frequently Asked

No. of investigations initiated by DGAD as on 30.11.2013

No. of investigations initiated by DGAD as on 30.11.2013 161

157

Malaysia

Russia

Others

Singapore

USA

Thailand

Chines Taipei

Korea RP

Japan

180 160 140 120 100 80 60 40 20 0

China PR

No. of Initiations

Chapter-1

(iii) D irectorate General of Anti-Dumping & Allied Duties (DGAD)

required, under the Customs Tariff Act, the amount of anti-dumping duty/ countervailing duty on the identified articles as would be adequate to remove injury to the domestic industry.

Countries

Annual Report 2013-14

During the period from 01.04.2013 to 30.11.2013, DGAD had initiated 25 number of anti-dumping cases, issued Preliminary Findings in 01 case, Final Findings in 19 cases including Final Findings in 1 case remanded back by Customs, Excise and Service Tax Appellate Tribunal (CESTAT). (B) Subordinate Offices (i) Directorate General of Commercial Intelligence and Statistics (DGCI&S) The Directorate General of Commercial Intelligence & Statistics (DGCI&S) is the premier organization of Govt. of India for collection, compilation and dissemination of Indiaâ&#x20AC;&#x2122;s trade statistics and commercial information. This Directorate, with its office located at Kolkata, is headed by the Director General. It is entrusted with the work of collecting, compiling and publishing / disseminating trade statistics and various types of commercial information required by the policy makers, researchers, importers, exporters, traders as well as overseas buyers.

Annual Report 2013-14

Data Receipt in DGCI&S DGCI&S receives the basic data in the form of DTRs (Daily Trade Returns) from different customs formations and Special Economic Zones (SEZs) as a part of the administrative data generated whenever any international merchandise trade takes place. The Customs Authority transmits these DTRs in three different modes, namely, Electronic Data Interchange (EDI), Non-EDI and Manual. The EDI data is transmitted on-line daily through Indian Customs EDI Gateway (ICEGATE). From the remaining Ports, the monthly merchandise trade data is transmitted through e-mail or CD or through manually typed/ handwritten paper schedules. From the SEZs, DTRs are transmitted electronically either through NSDL or through e-mail directly. However, from April, 2013 onwards DTRs from the SEZs are being received through NSDL daily on a trial basis. DGCI&S processes and compiles the raw data received using state-of-the-art technology. Volume of Data & % contribution by Type of DTR 2010-11 to 2012-13 The number of records being processed in DGCI&S has been steadily increasing over the years. From 39 lakh records processed in 2000-01, the number has increased to 140 lakh in 2012-13. The number of records processed during the last 3 years, the distribution of records by type and the contribution of different types of transactions to the total value of trade is shown in the following 3 tables:-

Role, Functions, Organizational Structure, Strategic Initiatives & Priorities

Questions concerning anti-dumping and anti-subsidy measures and placed on the website of the Ministry of Commerce and Industry (http://commerce.gov.in). Also available on the website is compendium on Anti-dumping laws and all the DGAD notifications, i.e. Initiation notifications, Preliminary and Final Findings, Corrigendum, etc. pertaining to various anti-dumping cases initiated by DGAD and all trade notices issued by DGAD.

Table 1.1 Number of Records Processed 2010-11 to 2012-13 Year 2010-11 2011-12 2012-13

Export 5518180 6779121 7459826

Import 5328817 6233440 6558292

Total 10846997 13012561 14018118

Table 1.2 Number of Records Processed (2010-11 to 2012-13) by type of record Year EDI

2010-11 2011-12 2012-13

85.31 87.22 87.94

Export Non-EDI Manual

8.88 8.62 10.04

5.82 4.16 2.02

EDI

94.27 93.41 92.89

Import Non-EDI Manual

4.03 5.91 6.72

1.71 0.69 0.39

Export + Import EDI Non-EDI Manual

89.61 90.18 90.26

6.54 7.32 8.49

3.84 2.50 1.26

Chapter-1

Table1.3 Contribution (%) of Different Types of Transactions to the value of trade Year EDI

2010-11 2011-12 2012-13

55.73 58.19 59.92

Export Non-EDI Manual

30.72 34.25 39.07

13.55 7.55 1.00

EDI

62.85 66.32 68.01

Foreign Trade Data Dissemination The foreign trade data generated by the Directorate are disseminated through (i) Monthly Press Release brought out by the Department of Commerce in a fortnightâ&#x20AC;&#x2122;s time from the end of a month, (ii) Foreign Trade Statistics of India (Principal Commodities & Countries), (iii) Monthly Statistics of Foreign Trade of India giving detailed item level trade, and (iv) Quarterly Statistics of Foreign Trade of India by Countries. It also brings out an Assessment Report on Indiaâ&#x20AC;&#x2122;s Foreign Trade by Air, every year. DGCI&S has drastically reduced time lag in all its releases and have made the data

Import Non-EDI Manual

17.98 24.32 30.50

19.17 9.36 1.49

Export + Import EDI Non-EDI Manual

59.97 63.19 64.94

23.13 28.14 33.76

16.89 8.66 1.30

dissemination process more user friendly based on the suggestions of its major stakeholders. The Principal commodity-wise data is now available within one month and the item level data within a period of two months. Improving Delivery and Accuracy of Foreign Trade Data A presentation on issues relating to transmission of trade data from Customs to DGCI&S was made before a Committee of Secretaries meeting chaired by Cabinet Secretary on 29.01.2013. Some of the issues discussed were (i) delay in transmission of data from Customs to DGCI&S, (ii) use of

Annual Report 2013-14

Development of Web based Module for online Data dissemination DGCI&S has now put in place a new web based module for on-line data dissemination “Foreign Trade Dissemination Portal (FTDP)” giving direct access to both the provisional and finalised data set. Some of the features of the data dissemination software are as follows:•

Creation of user ID and password by the user after providing necessary details like name, organisation, address, e-mail ID, telephone numbers, type of data required, etc.

•

Online payment with the help of internet banking facility.

•

Generation of reports in MS Excel, Text and PDF format depending on the user’s preference.

•

Availability of more number of advanced classifications for generation of reports by the users.

Annual Report 2013-14

•

Provision for storing of user defined queries in the server for repeated use.

•

Time series data for the last 5 years/ previous 12 months.

Publication of Ancillary Statistics & Indian Trade Journal DGCI&S also compiles and publishes on regular basis the Inland Trade Statistics covering inter-state movements of goods by rail, river and air, Statistics on India’s customs and excise revenue collections (according to the tariff heads), Shipping Statistics, Inland Coastal Trade Statistics and Selected Statistics of Foreign Trade of India. Indian Trade Journal, a weekly publication, is the premier publication of DGCI&S. Pilot Studies The Directorate has recently completed a pilot survey on trade in education services in the current financial year. A survey on wellness tourism has been taken up in the state of Kerala in collaboration with the Centre for Development Studies, Thiruvananthapuram. Both these surveys are being conducted under the technical guidance of an expert committee constituted by the Central Statistics Office in the Ministry of Statistics & Programme Implementation. The pilot to develop a methodology for creating a database on interstate movement of goods by road has been completed and the report published. (ii)

ffice of Development Commissioner O of Special Economic Zones (SEZs)

The main objectives of the SEZ Scheme are generation of additional economic activity, promotion of exports of goods and services,

Role, Functions, Organizational Structure, Strategic Initiatives & Priorities

non-standard quality units in their reporting by exporters/ importers, (iii) incorrect reporting of ITC(HS) codes, [i.e. Indian Trade Clarification based on Harmonized System of Coding] in shipping bill/ bill of entry and (iv) the need for putting in place a mechanism for regular reconciliation with Customs to ensure complete coverage of trade data, etc. A committee had been constituted under the Chairmanship of DG, NIC to examine these issues. The Committee submitted its report on 08.03.2013. The recommendations made by the Committee are currently under implementation by Central Board of Excise & Customs (CBEC) and DG (Systems) in consultation with all the stakeholders.

Chapter-1

promotion of investment from domestic and foreign sources, creation of employment opportunities along with the development of infrastructure facilities. All laws of India are applicable in SEZs unless specifically exempted as per the SEZ Act/ Rules. Each Zone is headed by a Development Commissioner and is administered as per the SEZ Act, 2005 and SEZ Rules, 2006. Units may be set up in the SEZ for manufacturing, trading or for service activity. The units in the SEZ have to be net foreign exchange earners but they are generally not subjected to any predetermined value addition or minimum export performance requirements. Sales in the Domestic Tariff Area from the SEZ units are treated as if the goods are being imported and are subject to payment of applicable customs duties. (iii) Pay and Accounts Office (Supply) The payment and accounting of Supply Division, including those of DGS&D, are performed by the Office of Chief Controller of Accounts (Supply Division) under the Departmentalized Accounting System. Payment to suppliers across the country is made through this organization at its headquarters in New Delhi and regional offices situated in Kolkata, Mumbai and Chennai. Internal Audit functions are also carried out in respect of 9 CDDO and 16 Non-CDDO situated at various places in the country. (iv) P ay and Accounts Office (Commerce & Textiles) The Pay and Accounts Office, common to both the Department of Commerce and the Ministry of Textiles, is responsible for the payment of claims, accounting of transactions

and other related matters through the four Departmental Pay & Accounts Offices in Delhi, two in Mumbai, two in Kolkata and two in Chennai. These Departmental Pay and Accounts Offices are controlled by the Principal Accounts Office at Delhi with the Chief Controller of Accounts (CCA) as the Head of the Department of the Accounts Wing. (C) Autonomous Bodies (i)

Coffee Board

The Coffee Board is a statutory organisation constituted under Section (4) of the Coffee Act, 1942 and functions under the administrative control of the Ministry of Commerce and Industry, Government of India. The Board comprises 33 Members including the Chairperson, who is the Chief Executive and functions from Bangalore. The remaining 32 Members representing various interests are appointed as per provisions under Section 4(2) of the Coffee Act read with Rule 3 of the Coffee Rules, 1955. The Board is mainly focusing its activities in the areas of research, extension, development, quality upgradation, economic & market intelligence, external & internal promotion and labour welfare. The Board has a Central Coffee Research Institute at Balehonnur (Karnataka) and Regional Coffee Research Stations at Chettalli (Karnataka), Chundale (Kerala), Thandigudi (Tamil Nadu), R.V.Nagar (Andhra Pradesh) and Diphu (Assam), and a bio-technology centre at Mysore, apart from the extension offices located in coffee growing regions of Karnataka, Kerala, Tamil Nadu, Andhra Pradesh, Orissa and North Eastern Region.

Annual Report 2013-14

(ii) Rubber Board

(iii) Tea Board Tea Board was set up as a statutory body on 1st April, 1954 as per Section (4) of the Tea Act, 1953. As an apex body, it looks after the overall development of the tea industry. The Board is headed by a Chairman and consists of 30 Members appointed by the Government of India representing various interests pertaining to tea industry. The Boardâ&#x20AC;&#x2122;s Head Office is

Annual Report 2013-14

(iv) Tobacco Board The Tobacco Board was constituted as a statutory body on 1stJanuary, 1976 under Section (4) of the Tobacco Board Act, 1975. The Board is headed by a Chairman with its headquarters at Guntur, Andhra Pradesh and is responsible for the development of the tobacco industry. While the primary function of the Board is export promotion of all varieties of tobacco and its allied products, its

Role, Functions, Organizational Structure, Strategic Initiatives & Priorities

The Rubber Board is a statutory organisation constituted under Section (4) of the Rubber Act, 1947 and functions under the administrative control of Ministry of Commerce and Industry. The Board is headed by a Chairman appointed by the Central Government and has 27 members representing various interests of natural rubber industry. The Boardâ&#x20AC;&#x2122;s headquarters is located at Kottayam in Kerala. The Board is responsible for the development of the rubber industry in the country by way of assisting and encouraging research, development, extension and training activities related to rubber. It also maintains statistical data of rubber, takes steps to promote marketing of rubber and undertake labour welfare activities. The activities of the Board are exercised through nine departments viz. Rubber Production, Research, Processing & Product Development, Training, License & Excise Duty, Statistics and Planning, Market Promotion, Finance & Accounts and Administration. The Board has five Zonal Offices and 43 Regional Offices. It has a Central Rubber Research Institute in Kottayam and 10 regional research stations located in various rubber growing states of the country. It also has a Rubber Training Institute located at Kottayam.

situated in Kolkata and there are two Zonal offices-one each in North Eastern Region at Jorhat in Assam and in Southern Region at Coonoor in Tamil Nadu. Besides, there are 15 regional offices spread over in all the major tea growing states and four metros. For the purpose of tea promotion, three overseas offices are located at London, Moscow and Dubai. During the year under report a separate directorate has been established to look after the developmental needs of the small tea sector in the country. Several Sub regional offices have been opened in all the important areas of small growers concentration to maintain a closer interface with the growers. The functions and responsibilities of Tea Board include increasing production and productivity, improving the quality of tea, market promotion, welfare measures for plantation workers and supporting Research and Development. Collection, collation and dissemination of statistical information to all stake holders is yet another important function of the Board. Being the regulatory body, the Board exerts control over the producers, manufacturers, exporters, tea brokers, auction organisers and warehouse keepers through various control orders notified under Tea Act.

functions extend to production, distribution (for domestic consumption and exports) and export promotion of Flue Cured Virginia (FCV) tobacco.

Chapter-1

(v) Spices Board The Spices Board was constituted as a statutory body on 26th February, 1987 under Section (3) of the Spices Board Act, 1986. The Board is headed by a Chairman appointed by Central Government and consists of 32 members. The Boardâ&#x20AC;&#x2122;s Head Office is at Kochi with Regional/Zonal/Field offices throughout India. It is responsible for the development of cardamom industry and export promotion of the 52 spices listed in the Schedule of the Spices Board Act, 1986. The primary functions of the Board include production development of small and large cardamom, development and promotion of export of spices. The Board is also implementing programmes for development of spices in North Eastern region, post-harvest improvement of spices and organic spices in the country. The activities of the Board include issue of certificate of registration as exporter of spices; undertaking programmes and projects for promotion of export of spices like setting up of spices parks, support of infrastructure improvement in spices processing, assisting and encouraging studies and research on medicinal properties of spices, development of new products, improvement of processing, grading and packaging of spices; and controlling & upgrading quality for export (including setting up of regional quality evaluation labs and training centres). With regard to cardamom, the Boardâ&#x20AC;&#x2122;s licenced auctioneers and dealers facilitate the domestic marketing through e-auctions. The research activities

on cardamom are also done by the Board through its Indian Cardamom Research Institute. (vi) The Marine Products Export Development Authority (MPEDA) The Marine Products Export Development Authority was set up as a Statutory Body in 1972 under an Act of Parliament (No.13 of 1972). The Authority, with its headquarters at Kochi and Field Offices in all the maritime States of India, is headed by a Chairman. The Authority is responsible for development of the marine industry with special focus on marine exports. Besides, it has Trade Promotional Offices in Tokyo (Japan) and New York (USA). (vii) Agricultural and Processed Food Products Export Development Authority (APEDA) The Agricultural and Processed Food Products Export Development Authority (APEDA) was established by the Government of India under the Agricultural and Processed Food Products Export Development Authority Act passed by the Parliament in December, 1985. The Authority, with its headquarters at New Delhi, is headed by a Chairperson. APEDA has been serving the agri-export community for 27 years and to reach out to the exporters in different parts of the country, in addition to 5 Regional Offices, APEDA has set up 13 Virtual Offices at Thiruvananthapuram (Kerala), Bhubaneshwar (Orissa), Srinagar (J&K), Chandigarh, Imphal (Manipur), Agartala (Tripura), Kohima (Nagaland), Chennai (Tamil Nadu), Raipur (Chhatisgarh), Ahmedabad (Gujarat), Bhopal (Madhya Pradesh), Lucknow (Uttar Pradesh) and Panaji (Goa). APEDA

Annual Report 2013-14

comprises main food laboratories at Chennai, Kochi, Kolkata and Mumbai, having state-of-art equipment besides a number of field laboratories attached to various suboffices for microbiological testing supports reliable third party certification by the organization.

APEDA has been actively engaged in the development of markets besides upgradation of infrastructure and quality to promote the export of agro products. In its endeavour to promote agro exports, APEDA provides financial assistance to the registered exporters under its Schemes for Market Development, Infrastructure Development, Quality Development and Transport Assistance.

(ix) Indian Institute of Foreign Trade (IIFT)

(viii) Export Inspection Council (EIC) The Export Inspection Council was set up as a Statutory Body on 1st January, 1964 under Section 3 of the Export (Quality Control and Inspection) Act, 1963 to ensure sound development of export trade of India through quality control and inspection and for matters connected therewith. The Council, an official export-certification body of India, is located at New Delhi and is headed by a Chairman. The Council is assisted in its functions by the Export Inspection Agencies (EIAs), responsible for carrying out the work of quality control, inspection and certification of notified commodities for exports under the Export (Quality Control and Inspection) Act, 1963 located at Chennai, Delhi, Kochi, Kolkata and Mumbai, each having sub-offices under them (a network of 29 sub-offices) including laboratories at important ports and industrial centres in India to cater to the requirements of the exporters at these places. The network of its laboratories

Annual Report 2013-14

The Indian Institute of Foreign Trade was registered in May, 1963 under the Societies Registration Act, 1860. The Institute was established by the Government of India with the objective to strengthen the country’s external trade sector through development of human resources and by generating, analyzing and disseminating data, conducting research and providing consultancy services. Since then, the Institute has been the pioneer in imparting training in foreign trade management in the country besides undertaking research and consultancy in various areas of international business. It is because of its all round achievements that the Institute was awarded the status of Deemed University in May, 2002 by University Grants Commission (UGC) and accredited in May, 2005 as ‘A’ grade institution by National Assessment and Accreditation Council (NAAC). To commensurate its achievement and contribution towards development of knowledge and growth of international trade, IIFT celebrated its Golden Jubilee on 2nd May, 2013. Shri Pranab Mukherjee, President of India, graced the ceremony as Chief and unveiled the Sculpture “Wings of Wisdom” at IIFT premises. Minister for Commerce & Industry released the Commemorative Volume of Foreign Trade review at the function.

Role, Functions, Organizational Structure, Strategic Initiatives & Priorities

has been entrusted with the responsibility of export promotion and development of 14 agricultural and processed food product groups listed in the Schedule to the APEDA Act. In addition to this, APEDA has been entrusted with the responsibility to monitor the import of sugar as well.

The Institute has emerged as a major centre of international business by aligning its teaching, research and training capabilities with its core vision over the years and by constantly striving to create academic excellence through its five academic divisions, namely, Graduate Studies Division (GSD), Research Division (RD), Management Development Programmes (MDPs) Division, International Collaboration and Capacity Development (ICCD) Division and International Project Division (IPD). Each Division caters to competency development in a specific area and contributes to the overall growth of the Institute.

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(x)

Indian Institute of Packaging (IIP)

The Indian Institute of Packaging is an autonomous body in the field of packaging technology which was set up on 14th May, 1966 as a society under Society Registration Act, 1860 in the year 1966 by the leading packaging and allied industries and the Ministry of Commerce, Government of India. The main objective of this Institute is to promote the export market by way of innovative package design and development and also to upgrade the packaging standards at national level. The head office of the Institute is situated at Mumbai and its branches are located at Delhi, Kolkata, Chennai and Hyderabad. Recently, the Govt. of Karnataka has offered a land of 4 acres to the Institute free of cost for the setting up a new centre at Bangalore. Accordingly, the Institute has taken all initiative to commence the construction of a building for the commencement of education and testing activities at IIP, Bangalore during the 12th Five Year Plan.

The main functions of the Institute are education in packaging and Research & Development in the field of packaging. Under educational activities, the Institute has been conducting a full time two years Post Graduate Diploma Programme in packaging technology since 1985 at Mumbai. Subsequently, similar programme has also started at Delhi, Kolkata and Hyderabad. About 180 students have taken admission into two years PGDP programme. As on date, more than 2200 students have successfully completed this programme and all of them are working in the leading FMG companies in India and abroad. In addition, under Research & Development, the Institute has got Research Laboratory for undertaking the applied research on packaging of specific food products to enhance the shelf life and also to evaluate the characteristics of various packaging materials for their performance properties. Besides, the laboratories are also engaged for the testing of packaging materials and packages. The Institute has got well equipped laboratories at head office Mumbai and other branches to carry out more than 360 types of quality tests for packaging materials and packages. The Governing Body of the Institute has got 33 members comprising of 21 members from the industries representing all sectors of packaging materials, packaging machineries and user industries and the balance 12 members are nominated by the different Ministries and Commodity Boards of Government of India. The Director is the Principal Executive Officer of the Institute who is the overall in-charge of the organization. The Institute has got two major divisions, i.e. technical and nontechnical. Technical divisions are having two departments, i.e. education and R&D.

Annual Report 2013-14

(D) Public Sector Undertakings (PSUs) (i)

S tate Trading Corporation of India Limited (STC)

Ever since liberalisation of trade policies since 1991, the Corporation carries out most of its business operations purely on commercial terms in the competitive global trading environment. STC has a paid up equity capital of Rs.60 crore. As on 31.03.2013, the share of Government of India in STC’s equity was 91.02%. However, the same has since been brought down to 90% by way of sale of 1.02% of Government of India’s holding in STC’s equity through stock exchanges. The balance 10% is held by mutual funds, financial institutions and

Annual Report 2013-14

The Board of Directors of STC comprises of whole time Chairman-cum-Managing Director, five whole-time Directors, two ex-officio Directors from Department of Commerce and independent Directors appointed by the Government from time to time. Presently, STC has eight independent Directors on its Board. STC has thirteen branch offices in India, the major ones being at Mumbai, Kolkata, Chennai, Ahmedabad, Bangalore and Hyderabad. The total manpower of the Corporation as on 31.03.2013 was 830. STC has own tank farms, warehouses, godowns at various locations of the country for storage of liquid/dry cargo. (ii)

MMTC Limited

The MMTC Limited was created in 1963 as an independent entity on separation from State Trading Corporation of India Ltd. primarily to deal in exports of minerals and ores and imports of non-ferrous metals. In 1970, MMTC took over imports of fertilizer raw materials and finished fertilizers. Over the years import and export of various other items like steel, diamonds, bullion, agro, hydrocarbon, etc. were progressively added to the portfolio of the company. MMTC has been following the mantra of strategic diversification for progress with much success, exploiting opportunities to expand base and open up new business prospects. It endeavours constantly to explore emerging

Role, Functions, Organizational Structure, Strategic Initiatives & Priorities

STC was set up on 18th May, 1956 primarily with a view to undertake trade with East European countries and to supplement the efforts of private trade and industry in developing exports from the country. Since then, STC has played an important role in country’s economy. It has arranged imports of essential items of mass consumption (such as wheat, pulses, sugar, edible oils, etc.) into India and contributed significantly in developing exports of a large number of items from India. The core strength of STC lies in handling exports/ imports of bulk agro commodities. Over the years, STC has also diversified into exports of steel, iron ore, molasses and imports of bullion, hydrocarbons, minerals, metals, fertilizers, petro-chemicals, etc. This has helped STC achieve high level of performance in the recent years. STC is today able to structure and execute trade deals of any magnitude, as per the specific requirement of its customers.

public. It has built a net worth of Rs.590 crore as on 31.03.2013 and has contributed a sum of over Rs.1200 crore till date to the public exchequer by way of payment of dividends and corporate taxes.

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opportunities by synergizing and blending them with its own core competencies, thereby creating new epicentres of growth and expanding its role as a trade organizer and facilitator. The company has participated in various value-multiplier initiatives to enhance its future sustainability through the JV and PPP route. MMTC has grown over the years to become one of the largest trading organizations in India.

engineering equipment and manufactured goods, defence equipment & stores, import of industrial raw materials, bullion and agro commodities, consolidation of existing lines of business and simultaneously developing new products and new markets; diversification in export of non-engineering items eg. coal and coke, iron ore, edible oils, steel scraps, etc.; and structuring counter trade/ special trading arrangements for further exports.

Subsidiary Company

Over the years, business of PEC Ltd. has diversified with industrial raw materials, commodities and bullion constituting major part of its turnover and profit. Some of the key initiatives have been consolidation of existing line of business and selective diversification into sustainable business areas improving operational efficiency and cost effectiveness.

MMTC Transnational Pte Ltd., Singapore (MTPL) is a wholly owned subsidiary company of MMTC. MTPL continues to enjoy prestigious “Global Trader Programme” (GTP) status awarded to it by International Enterprise, Singapore since FY 2000. To expand and give impetus to growing trade between India and Africa, MMTC has opened an office at Johannesburg, South Africa in January, 2011. (iii) PEC Limited PEC Ltd (formerly – The Project and Equipment Corporation of India Ltd.) was carved out of the STC in 1971-72 to take over the canalized business of STC’s (State Trading Corporation of India Ltd.) railway equipment division, to diversify into turn-key projects especially outside India and to aid and assist in promotion of exports of Indian engineering equipment. With effect from 23rd May, 1990, PEC Ltd. became a subsidiary of the then newly formed Holding Company, Bharat Business International Ltd. Thereafter, from 27th March, 1991, PEC Ltd. became an independent company directly owned by Government of India. The main functions of PEC Ltd. includes export of projects,

PEC Ltd., over last four decades has expanded its role to become an international trading company and a provider of integrated trade facilitating services. (iv) E xport Credit Guarantee Corporation of India Limited (ECGC) The Corporation was established in 1957 as the Export Risk Insurance Corporation of India Ltd. Keeping in view the wider role played by the Corporation, the name was changed to Export Credit Guarantee Corporation of India Ltd. (ECGC). ECGC is the premier organization in the country which offers credit risk insurance cover to exporters, banks, etc. The primary objective of the Corporation is to promote country’s exports by covering the risk of export on credit. It provides: (a) a range of insurance covers to Indian exporters against the risk of non-realization of export proceeds

Annual Report 2013-14

due to commercial or political causes and (b) different types of guarantees to banks and other financial institutions to enable them to extend credit facilities to exporters on liberal basis. (v) India Trade Promotion Organization (ITPO)

The main corporate objectives of ITPO are: •

•

To promote external and domestic trade of India in cost-effective manner by organising and participating in international trade fairs in India and abroad; organising buyer-seller meets and contact promotion programmes abroad; conducting overseas market surveys, exchanging and coordinating visits of business delegations and undertaking need-based research to facilitate trade in specific sectors/ markets; To support and assist small and medium enterprises to access markets – both in India and abroad;

•

To disseminate trade information and facilitate E-commerce/ trade;

•

To develop quality physical infrastructure, services and management so as to enable holding of trade promotion events such as conventions and trade exhibitions of international standards; and

Annual Report 2013-14

To enlist the involvement and support of the State Governments, other government trade promotion agencies, trade and industry associations in the promotion of India’s external and domestic trade.

With its Headquarters at Pragati Maidan, New Delhi and regional offices at Bangalore, Chennai, Kolkata and Mumbai, ITPO ensures representative participation of trade and industry from different regions of the country in its events in India and abroad. (E)

Export Promotion Councils (EPCs)

Presently, there are fourteen Export Promotion Councils under the administrative control of the Department of Commerce. Names and addresses of these Councils are given in Annexure 1.2. These Councils are registered as non-profit organizations under the Companies Act/ Societies Registration Act. The Councils perform both advisory and executive functions. The role and functions of these Councils are guided by the Foreign Trade Policy, 2009-14. These Councils are also the registering authorities for exporters under the Foreign Trade Policy 2009-14. (F)

Advisory Bodies

(i)

Board of Trade (BOT)

The Board of Trade (BOT) was reconstituted on 16.07.2009 under the Chairmanship of Commerce & Industry Minister vide order No.01/94/180/438/AM05/BOT/PC-V dated 16.07.2009. The Board of Trade, inter alia, advises the Government on policy measures connected with the Foreign Trade Policy in order to achieve the objectives of boosting India’s trade.

Role, Functions, Organizational Structure, Strategic Initiatives & Priorities

The Trade Fair Authority of India (TFAI) and the Trade Development Authority (TDA) were merged together in 1992, and the new organization was renamed as India Trade Promotion Organisation (ITPO). ITPO is the premier trade promotion agency of India and provides a broad spectrum of services to trade and industry and acts as a catalyst for growth of India’s trade.

•

The sixth meeting of the reconstituted Board of Trade was held on 27.08.2013 to discuss the following issues: a. Overview of global Trade; b. Policy measures to mitigate fallout of the adverse scenario; c. Procedural simplification: suggestion, if any; and

specific

d. Views on Strategy paper put out by Department of Commerce.

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(ii)

Inter-State Trade Council (ISTC)

The Inter State Trade Council has been set up to serve as a mechanism for institutionalized dialogue between the Union and the States in matter relating to trade facilitation and to create a framework for making States partners in India’s export effort. (G) Other Organizations (i)

F ederation of Indian Organizations (FIEO)

Export

The Federation of Indian Export Organizations set up in 1965, is an apex body of various export promotion organizations and institutions with its major regional offices at Delhi, Mumbai, Chennai and Kolkata. The main objective of FIEO is to render an integrated package of services to various organizations connected with export promotion. It provides the content, direction and thrust to India’s global export effort. It also functions as a primary servicing agency to provide integrated assistance to its members comprising professional exporting firms holding recognition status granted by the government, consultancy firms and service providers. The Federation organizes seminars and arranges participation in

various exhibitions in India and abroad. It also brings out ‘FIEO News’, for creating awareness amongst its member exporters and importers. (ii)

Indian Diamond Institute (IDI)

The Indian Diamond Institute was established as a Society in the year 1978 at Surat, Gujarat, with the objective of enhancing the quality, design and global competitiveness of the Indian jewellery. The Institute is sponsored by the Department of Commerce and is a project of Gems and Jewellery Export Promotion Council (GJEPC). IDI has developed itself as a premier institute for imparting technical skills to the gems and jewellery industry. The Institute conducts various diploma and other courses related to diamond & jewellery trade and industry. It also offers the three year diploma course on Diamond, Gem & Jewellery Design & Manufacture. Institute’s Diamond Certification & Grading Laboratory has been recognized world over and its laboratory is also authorised by the DGFT, MOC&I, as per Chapter 4 of FTP 2009-14 for certification / grading of diamonds of 0.25 Ct and above. IDI has been accorded with recognition as a Scientific & Industrial Research Organisation (SIRO) under Department of Scientific & Industrial Research, Ministry of Science & Technology, Government of India. It has been also recognised as Anchor Institute (Gem & Jewellery) by Industries Commissionerate, Government of Gujarat. (iii) Footwear Design & Development Institute (FDDI) Footwear Design and Development Institute was established in the year 1986 as a Society under the Societies Registration Act, 1860

Annual Report 2013-14

•

Focus Market: Focus Product – Export potential studies.

•

Drawing/ evaluating wish lists/ offer lists under various PTA/ FTAs of India (existing and prospective).

(iv) N ational Centre for Trade Information (NCTI) The National Centre for Trade Information was incorporated on 31st March, 1995 as a company under Section 25 of Companies Act, 1956. The company started functioning w.e.f. March, 1996. It has a Board of Directors for administration of its affairs, which includes representatives from Ministry of Commerce & Industry, National Informatics Centre (NIC), Indian Institute of Foreign Trade (IIFT), and Directorate General of Commercial Intelligence & Statistics (DGCI&S). Other representatives are from India Trade Promotion Organisation (ITPO) and other Export Promotion Councils/ Apex Bodies.

Trade Data Analysis support to Department of Commerce •

India-ASEAN FTA.

•

Identification of Tariff lines with high export potential to Eastern and Central European Countries.

•

India-Canada FTA – Analysis of trade data and identification of Potential items for India’s wish list.

Support to Trade and Industry •

Creation and maintenance of websites.

•

Website content management.

•

Market research/ studies/ surveys.

•

Creation of databases – Importers/ Exporters (product category wise).

•

Electronic Trading Opportunities (ETOs) or live trade enquiries – all markets all products.

•

ITPO and NIC are co-promoters of the company and have contributed a sum of Rs.4.00 crore (Rs.2.00 crore each) as Corpus Fund in the equity contribution of the company.

Uploading 52 issues of E-weekly ‘Trade Point-India’ annually on its website containing approximately 250 Trade Leads each week.

•

Setting up Trade Information Centres.

•

Trade Fair/ exhibitions support.

Major Activities of NCTI

Web & Database Support Provided to ITPO

•

Trade data based research and analysis – 2/4/6/8 digit HS classification – India/ Target Country – 9/10 digit level.

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Development & maintenance of all Fair Specific Websites Corporate, RTI websites of ITPO.

Role, Functions, Organizational Structure, Strategic Initiatives & Priorities

with an objective to train the professional manpower for footwear industry. The Institute is an ISO:9001 and ISO:14001 certified Institute, which conducts wide range of long term and short term programmes in the area of Retail Management, Fashion, Footwear Merchandising, Marketing, Creative Design, and Leather Goods & Accessories Design, etc. The Institute provides one stop solution to the footwear industry and is internationally acclaimed as one of the premier institutes in the area of footwear design, technology and management.

•

Creation & maintenance of all fair specific websites updates on the Corporate, RTI websites of ITPO.

•

Creation of Sector Specific Database & Participants Feedback Survey for ITPO.

•

Collection and compilation of Sector Specific Database and Participants Feedback Survey for various fairs organized by ITPO:

 Website design and development

 Database creation

 Visitor registration

 Feedback surveys.

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(v)

Price Stabilization Fund Trust (PSFT)

The Price Stabilization Fund (PSF) Scheme was launched by Government of India in April 2003 against the backdrop of decline in international and domestic prices of tea, coffee, rubber and tobacco causing distress to primary growers. The growers of these commodities were particularly affected due to substantial reduction in unit value realization for these crops, at times falling below their cost of production. The objective of the scheme was to safeguard the interests of the growers of these commodities and provide financial relief when prices fall below a specified level. The scheme

was operationalized through the Price Stabilization Fund Trust. The PSF Scheme period got over on 30th September, 2013 and a revised scheme proposal – modified Price Stabilization Fund Trust (2013) is under consideration of the Government. As on 30th September, 2013, deposits in the PSF Corpus Fund were Rs.435.55 crore, out of which Rs.432.88 crore was contributed by GOI and Rs.2.67crore by growers by way of entry fee. A Personal Accident Insurance Scheme (PAIS) was also under implementation by PSFT through Cholamandalam M/s. General Insurance Co. Ltd. for the period 2012-13, which covered the growers in the sectors of tea, coffee, rubber, tobacco and spices (chillies, cardamom, ginger, turmeric and pepper) having plantations upto 4 hectares only. The scheme also covers all plantation workers working on these plantations regardless of the size of holdings. The insurance cover is upto Rs.1.00 lakh per person. The premium of Rs.22.06/- is shared between the beneficiary and the PSF Trust in the ratio 50:50. During the year 2013-14, PAIS was operational only up to 30.09.2013. A revised PAI Scheme proposal is under the consideration of the Government.

Annual Report 2013-14

Annexure-1.1

Work Allocated to Department of Commerce in accordance with the Allocation of Business Rules, 1961 A.

DEPARTMENT OF COMMERCE

INTERNATIONAL TRADE

1. International Trade and Commercial Policy including tariff and non-tariff barriers. 2. International Agencies connected with Trade Policy (e.g. UNCTAD, ESCAP, ECA, ECLA, EEC, EFTA, GATT/WTO, ITC and CFC)**. All issues relating to the WTO including interpretation of WTO rules and its dispute settlement mechanism. 3. International Commodity Agreements other than agreements relating to wheat, sugar, jute and cotton. 4. Residual work of Tariff Commission. II.

FOREIGN TRADE (GOODS & SERVICES)

5. All matters relating to foreign trade. 6. Foreign Trade Policy and Control, excluding matters relating to

(a) import of feature films;

(b) export of Indian films- both feature length and short; and

(c) import and distribution of cinefilm (unexposed) and other goods required by the film industry. 7. Setting up of Agricultural Export Zone (AEZ) and 100% Export Oriented Units (EoUs) including policy and regulatory

Annual Report 2013-14

and

all

other

8. Development, expansion of export production and regulation of foreign trade in relation to all commodities and products (excluding jute products and handicrafts). 9. Matters relating to Export Promotion Board, Board of Trade and International Trade Advisory Committee. 10. Matters relating to concerned Export Promotion Councils/ Export Promotion Organizations. 11. Coordination for export infrastructure. 12. Projects and programmes for stimulating and assisting the export efforts. III. STATE TRADING 13. Policies of State Trading and performance of organisations established for the purpose. 14. Production, distribution (for domestic consumption and exports) and development of plantation crops, viz., tea, coffee, rubber, FCV tobacco*, spices (production development and export promotion of cardamom & pepper and export activities of all other spices). Export promotion of cashew and tobacco & their allied products.

* Regulation and export promotion of Flue Cured Virginia (FCV) tobacco and export promotion of all other types of tobacco & its allied products.

Role, Functions, Organizational Structure, Strategic Initiatives & Priorities

The mandate of the Department of Commerce is regulation and development of Indiaâ&#x20AC;&#x2122;s international trade and commerce.

framework matters.

15. Processing and distribution for domestic consumption and exports of Instant Tea and Instant Coffee. IV. SPECIAL ECONOMIC ZONES 16. All matters relating to development, operation and maintenance of special economic zones and units in special economic zones, including foreign trade policy, fiscal regime, investment policy, other economic policy and regulatory framework.

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{Note: All fiscal concessions and policy issues having financial implications are decided with the concurrence of the Department of Expenditure/Revenue (Ministry of Finance) or failing such concurrence, with the approval of the Cabinet.)

V. CADRE MANAGEMENT OF SPECIFIC CENTRAL SERVICES 17. Cadre Management and all matters pertaining to training and manpower planning for the following services VI.

(1) Indian Trade Service; (2) Indian Supply Service; (3) Indian Inspection Service. ATTACHED AND SUBORDINATE OFFICES

18. The following are attached subordinate offices under Department-

and this

(A) ATTACHED OFFICES

(1) Directorate General of Anti-Dumping and Allied Duties (DGAD). (2) Directorate General of Foreign Trade (DGFT).

(3) Directorate General of Supplies and Disposals (DGS&D).

(B) SUBORDINATE OFFICES

(1) Directorate General of Commercial Intelligence and Statistics (DGCI&S). (2) Office of Development Commissioner of Special Economic Zones (a) Cochin Special Economic Zone, Kochi. (b) Falta Special Economic Zone, Kolkata. (c) Kandla Special Economic Zone, Gujarat. (d) MEPZ Special Economic Zone, Chennai. (e) Noida Special Economic Zone, Noida. (f) Santa Cruz Special Economic Zone, Mumbai. (g) Visakhapatnam Special Economic Zone, Visakhapatnam. VII. STATUTORY/AUTONOMOUS BODIES/ PUBLIC SECTOR UNDERTAKINGS / OTHER ORGANISATIONS 19. The following are Statutory/Autonomous Bodies, Public Sector Undertakings and Other Autonomous Organisations under the oversight of this Department(A) STATUTORY/AUTONOMOUS BODIES

(1) Agricultural & Processed Food Products Export Development Authority (APEDA). (2) Coffee Board. (3) Export Inspection Council of India (EIC).

Annual Report 2013-14

(4) (5) (6) (7)

Rubber Board. Spices Board. Tea Board. The Marine Products Export Development Authority (MPEDA). (8) Tobacco Board.

(1) ECGC (Export Credit Guarantee Corporation of India Limited). (2) ITPO (India Trade Promotion Organization). (3) MMTC Limited (formerly Minerals and Metals Trading Corporation of India Limited). (4) PEC Limited (formerly The Projects and Equipment Corporation of India Limited). (5) STC Limited (State Trading Corporation of India Ltd.). (6) STCL Limited (formerly Spices Trading Corporation Ltd.).

AUTONOMOUS

(1) Footwear Design & Development Institute (FDDI). (2) Indian Diamond Institute (IDI). (3) Indian Institute of Foreign Trade (IIFT). (4) Indian Institute of Packaging (IIP). (5) National Centre for Trade Information (NCTI). (6) Price Stabilisation Fund Trust (PSFT).

VIII ACTS/ LEGISLATIONS 20. Acts/ Legislations directly pertaining to Department of Commerce -

Annual Report 2013-14

(1) Agricultural and Processed Food Products Export Development Authority (APEDA) Act, 1985. (2) Coffee Board Act, 1942. (3) Export (Quality Control and Inspection) Act, 1963. (4) Foreign Trade (Development and Regulation) Act, 1992. (5) Rubber Board Act, 1947. (6) Spices Board Act, 1986. (7) Tea Board Act, 1953. (8) The Marine Products Export Development Authority (MPEDA) Act, 1972. (9) The Special Economic Zones Act, 2005. (10) Tobacco Board Act, 1975. ** The full form of abbreviations used at Sl.No. A.I.2 hereinabove is as under:

• UNCTAD - United Nations Conference on Trade and Development. • ESCAP - Economic and Social Commission for Asia and the Pacific. • ECA - Export Credit Agencies. • ECLA - Economic Commission for Latin America. • EEC European Economic Community. • EFTA - European Free Trade Association. • GATT - General Agreement on Tariffs and Trade. • WTO - World Trade Organisation. • ITC - International Trade Centre • CFC Controlled Foreign Corporation.

Role, Functions, Organizational Structure, Strategic Initiatives & Priorities

(B) PUBLIC SECTOR UNDERTAKINGS

Annexure-1.2

Attached Offices/ Subordinate Offices/ Autonomous Bodies/ Public Sector Undertakings/ Export Promotion Councils/Other Organizations under the Department of Commerce Attached Offices 1. Directorate General of Foreign Trade, Udyog Bhavan, New Delhi – 110107. 2. Directorate General of Supplies & Disposals, Jeevan Tara Building, Parliament Street, New Delhi - 110001.

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3. Directorate General of Anti-Dumping & Allied Duties, Udyog Bhavan, New Delhi – 110107. Subordinate Offices 1. Directorate General of Commercial Intelligence and Statistics, No. 1, Council House Street, Kolkata – 700001, West Bengal. 2. Cochin Special Economic Zone, Administrative Building, Kakkanad, Kochi – 600030, Kerala. 3. Falta Special Economic Zone, IInd MSO Building, 4th Floor, R.No. 44, Nizam Palace Complex, 234/4, AIC Bose Road, Kolkata – 700020, West Bengal. 4. MEPZ Special Economic Zone, National Highway 45, Administrative Office Building, Tambaram, Chennai – 600045, Tamil Nadu.

7. Visakhapatnam Special Economic Zone, Administrative Building, Duvvada, Visakhapatnam – 530046, Andhra Pradesh. 8. Noida Special Economic Zone, Noida Dabri Road, Phase-II, Noida – 201305, Distt. Gautam Budh Nagar, Uttar Pradesh. 9. Pay and Accounts Office (Commerce), Udyog Bhavan, New Delhi - 110107. 10. Pay and Accounts Office (Supply Division), 16-A, Akbar Road Hutments, New Delhi – 110011. Autonomous Bodies 1. Coffee Board, 1, Dr. B.R. Ambedkar Veedhi, Bangalore – 560001, Karnataka. 2. Rubber Board, Sub-Jail Road, P.B. No.1122, Kottayam – 686002, Kerala. 3. Tea Board, 14, BTM Sarani, Brabourne Road, P.B. No.2172, Kolkata – 700001, West Bengal. 4. Tobacco Board, P.B.No.322, Guntur – 522004, Andhra Pradesh.

5. Kandla Special Economic Zone, Gandhidham, Kutch-370230, Gujarat.

5. Spices Board, Sugandha Bhavan, N.H. Bypass, PB-2277, Palarivattom P.O. Kochi – 682025, Kerala.

6. SEEPZ Special Economic Zone, Andheri (East), Mumbai – 400096, Maharashtra.

6. Marine Products Export Development Authority, MPEDA House, Panampilly Avenue, Kochi – 682036, Kerala.

Annual Report 2013-14

7. Agricultural & Processed Food Products Export Development Authority, NCUI Building, Siri Institutional Area, August Kranti Marg, New Delhi – 110016. 8. Export Inspection Council of India, 3rd Floor, NDYMCA Cultural Centre Building, 1, Jai Singh Road, New DelhI-110001.

10. Indian Institute of Packaging, B-2, MIDC Area, P.B.No. 9432, Andheri (East), Mumbai – 400096, Maharashtra. Public Sector Undertakings 1. State Trading Corporation of India, Jawahar Vyapar Bhavan, Tolstoy Marg, New Delhi - 110001. Subsidiary of STC 1. STCL Ltd., No. 7A, "STC Trade Centre", 3rd Floor, Nandini Layout, Bengaluru – 560096, Karnataka. 2. MMTC Ltd., Scope Complex, 7, Institutional Area, Lodhi Road, New Delhi - 110003. 3. PEC Ltd., “Hansalaya”, 15, Barakhamba Road, New Delhi - 110001. 4. Export Credit Guarantee Corporation of India Ltd., 10th Floor, Express Towers, P.B. No. 373, Nariman Point, Mumbai 400021, Maharashtra. 5. India Trade Promotion Organization, Pragati Maidan, Mathura Road, New Delhi – 110001.

Annual Report 2013-14

1. Chemexcil, Jhansi Castle, 4th Floor, 7, Cooperage Road, Mumbai – 400039, Maharashtra. 2. CAPEXIL, “Vanijya Bhawan”, International Trade Facilitation Centre, 1/1 Wood Street, 3rd Floor, Kolkata – 700016, West Bengal. 3. Cashew Export Promotion Council of India, Cashew Bhavan, Mundakkal, Kollam – 691001, Kerala. 4. Council for Leather Exports,No.1, CMDA Tower II, III floor, Gandhi Irwin Road, Egmore, Chennai - 600 008, Tamil Nadu. 5. EEPC “Vanijya Bhawan”, International Trade Facilitation Centre, 1st Floor, 1/1 Wood Street, Kolkata – 700016, West Bengal. 6. Gems &Jewellery Export Promotion Council, Office No. AW 1010, Tower A, G Block, Bharat Diamond Bourse,Next to ICICI Bank, Bandra-Kurla Complex, Bandra – East, Mumbai – 400051, Maharashtra. 7. Project Exports Promotion Council of India (PEPC), 123, 1st Floor, Behind Shankar Road Market, New Rajinder Nagar, New Delhi – 110060. 8. Plastics Export Promotion Council, Crystal Tower, Ground Floor, Gundiwali Road No.3, Opp. Sir M.V. Road, Andheri (East), Mumbai – 400069, Maharashtra. 9. Shellac Export Promotion Council, ”VanijyaBhawan”, International Trade Facilitation Centre, 1/1 Wood Street, 2nd Floor, Kolkata – 700016, West Bengal.

Role, Functions, Organizational Structure, Strategic Initiatives & Priorities

9. Indian Institute of Foreign Trade, B-21, Institutional Area, South of IIT, New Delhi – 110016.

Export Promotion Councils

10. Export Promotion Council for EOUs & SEZ Units, 8-G, 8th Floor, Hansalaya Building, 15, Barakhamba Road, New Delhi-110001. 11. Pharmexcil, 101, AdityaTrade Centre, Ameerpeth, Hyderabad-500 038, Andhra Pradesh. 12. Indian Oil Seeds & Produce Export Promotion Council, 78-79, Bajaj Bhawan, Nariman Point, Mumbai – 400 021, Maharashtra.

Chapter-1

13. Services Export Promotion Council, 509-518, 5th Floor, Apparel House, Institutional Area, Sector-44, Gurgaon – 122003, Haryana. 14. Sport Goods Export Promotion Council, 1-E/6, Swami Ram Tirth Nagar, JhandewalanExtention, New Delhi110055.

Other Organizations 1. Federation of Indian Export Organizations, NiryatBhawan, Rao Tula Ram Marg, Opp. Army Hospital (Research& Referral), New Delhi-110057. 2. Indian Diamond Institute, Katargam, GIDC, Sumul Dairy Road, P.B. No. 508, Surat-395008, Gujarat. 3. Footwear Design & Development Institute, A-10/A, Sector-24, Noida – 201301, GautamBudh Nagar, Uttar Pradesh. 4. National Centre for Trade Information, NCTI Complex, PragatiMaidan, New Delhi - 110001. 5. Price Stabilisation Fund Trust, Room No.2003. 20th Floor, JawaharVyaparBhawan, Tolstoy Marg, Connaught Place. New Delhi - 110001.

Annual Report 2013-14

JS(JKD) FT (Australia and New Zealand), Anti Dumping and Subsidies, Board of Safeguards, IIFT, EP (ECS), EP (LSG), Infrastructure, ASIDE Scheme, States Cell, Main-streaming of States in International Trade and Export Promotion in the North-East

JS(AM) FT(SA/ SAARC/ Iran), E&MDA, MAI, ECGC, Exim Bank, EP (OP) & Vigilance Section

Addl. Charge:- Parliament

JS(SC) TPD (NAMA, Textiles, Disputes Settlement and Rules, Trade Facilitation, Customs valuation, Import Licensing Procedures, RMTR and CRTA, APTA, BIMSTEC, GSP, Accession, CTD and Aid for Trade Initiative, Trade & Transfer of Technology, Trade Debt and Finance, Electronic Commerce). UNCTAD (including GSTP), Small Economies and LDCs, Investment (including TRIMS) and Competition, Government Procurement, IBSA, BRICS and RCEP Negotiations. CHEMEXIL and Administration of EP (CAP). India-EU BTIA and India-EFTA Negotiations

[*Source : docnic - Officers' Contact Details & Work Allocation.]

DGS&D, DGS&D, EP (G&J) & Kimberley Process

JS(RA) SEZ, EOU, FOI, FT (NAFTA/ AM), FIEO, EP Textiles, PLEXCONCIL

JS(DR) EA(SD) EA(RD) FT (Europe), EPL-I EPL-II FT (LAC), CAPEXIL and SHEFEXIL

Additional Secretary (RRR) Plantations, National Steering Committee on Organic Products, Chairman EIC; IBEF, Indian Institute of Packaging (IIP)

JS(SPM) FT (Coordination), Hindi Division and RTI Cell Independent Charge, Additional:O&M,/ IWSU/C&MT Sections)

Additional Secretary (JSD) Trade Policy Division including RMTR and UNCTAD, Regional Comprehensive Economic Partnership (RCEP) negotiations, EP (Services Export), New Convention Centre Projects, ITPO, Trade with CIS, Addl. Charge:- DGAD

JS(SP) TPD (Agriculture, Safeguards, SPS, TBT, TNC and General Council, Centre for WTO Studies, NCTI, Environment and E.I, E.II, E.III, Labour, STEs, E.IV, General BIPA, Ministerial Admn., Conference), TPD Addl. Charge: Protocol, TA/TC, (Coordination and Cash-I, Cash II. Administration), FT (CIS), Trade Finance TPD (Services) Division/Public and TRIPS, EP Grievances, Pharmaceuticals Supply (Pharmexil), EP Division, (Services) Offset Policy and GS1 India

JS(AKT) FT (NEA), EP (Agri), Biotechnology, MPEDA, EP(MP) and Export Inspection,

Additional Secretary (DSD) Monitoring and Review of Export Strategy, Administration & Establishment, FT (Africa) and FT (WANA). Addl: CMD (MMTC).

JS(RC) FT (ASEAN), ESCAP, EP (Engg.) including Export of Defence and High Technology Products.

Additional Secretary & Additional Secretary Financial Advisor (BPP) (MP) Finance, Budget & Accounts, Infrastructure, Centre State Trade Finance. Interaction on Exports including States Cell, Foreign Trade (State Trading), Foreign Trade (Mineral & Ores), Special Economic Zone, Export Oriented Units/ Foreign Overseas Investment, Foreign Investment Promotion Board (Export Promotion), and Supervisory charge of FT (LAC) & FT (NAFTA/AM)

ORGANISATION CHART * Minister of State (Independent Charge) for Commerce & Industry (Ms. Nirmala Sitharaman) Commerce Secretary (Shri Shri Rajeev Kher)

Role, Functions, Organizational Structure, Strategic Initiatives & Priorities

Annual Report 2013-14

The Global Economic Situation and Indiaâ&#x20AC;&#x2122;s External Sector

Introduction

Chapter-2

The global economic slowdown and the sovereign debt crisis which had led to a stagnation in World output continued to pose challenges in 2013-14. The speculation on the Quantitative Easing policy of the United State (US) government led to outflow of Foreign Institutional Investments and significant depreciation of developing economy currencies including that of India. However, the situation improved in the second quarter (Q2) with gradual recovery in growth among world economies. Growth in developing and emerging markets finally picked up after a slowdown in the first quarter of 2013-14. For India, economic growth remained below 5% for the second year in a row at 4.7% in 2013-14 (as per the provisional estimates of CSO), mainly due to decline in manufacturing output. Upward pressure from food and fuel prices kept overall inflation high prompting the Reserve Bank of India (RBI) to go with a tight monetary policy. On the other hand, low tax revenue and high spending on subsidies affected fiscal consolidation. The challenges for the new government after the General election of 2014 is the simultaneous tackling of two sets of issues, increasing growth and undertaking fiscal consolidation. Achieving growth above 5% in 2014 will require

sustained improvement in manufacturing sector growth and performance. I. Global Economic Overview

Growth:

The global economy started reviving, after dealing with the prolonged effects of the global crisis. Economic activity revived in developed countries, though downside risks persist due to tight financial conditions. The IMF World Economic Outlook (WEO), highlights that global economic activity has picked up during the second half (H2) of 2013 with expectation of further improvement in 2014â&#x20AC;&#x201C;15. The outlook has projected world growth at 3.6% in 2014 and by 3.9% in 2015. The projections made by IMF are higher than the one made by the United Nations (UN) in its World Economic Situation and Prospects (WESP), 2014 and World Bank, Global Economic Prospect (GEP), 2014. The projection by World Bank stood at 2.8% and 3.4% for 2014 and 2015 respectively while, as per the UN projection the global economy is expected to grow at the rate of 2.8% and 3.2% in 2014 and 2015 respectively. Both IMF and World Bank maintain that the recovery in the global economy will be supported by improvement in the advanced/ high income economies. As per IMF, growth of AEs (Advanced Economies) is projected to strengthen from 1.3% in 2013 to 2.2% in 2014 and further to 2.3% in 2015.

Annual Report 2013-14

As per the Organization for Economic Cooperation and Development (OECD) the global economy will grow by 3.4% in 2014

and by 3.9% in 2015. The OECD economies will grow by 2.2% and 2.8% in 2014 and 2015 respectively.

Chart 2.1: Growth Dynamics (2012-2015P)

3.9

3.6

3.2

1.4

2.2

2.3

2014P

2015P

1.3

2012 World Output

5.3

4.9

4.7

2013 Advanced Economies

Emerging Market and Developing Economies

Source: IMF, WEO April 2014

Economic conditions are expected to gradually improve in 2014, which will primarily be driven by good performance of advanced/high income economies (IMF, 2014). The major stimulus/boost is expected to come from the US. The US is projected to grow at 2.8% and 3.0% in 2014 and 2015 respectively. The Euro area is expected to realize growth of 1.2% in 2014, after contracting by about

0.5% in 2013. For Japan, growth is expected to drag down from 1.5% in 2013 to 1.4% in 2014. As per the IMF, the performance of the Emerging Market and Developing Economies (EMDEs) picked up in the H2 of 2013. Exports improved with stronger activity in the advanced economies and currency depreciation.

Table 2.1: World Economic Growth Estimates for 2013 - 2015 (Annual percentage Change) UN

IMF

World Bank

2013 2014f 2015f 2013 2014P 2015P 2013e 2014f 2015f World

2.2

2.8

3.2

3.6

3.9

2.4

2.8

3.4

Developed economies/ Advanced Economies/High Income

1.1

2.0

2.4

1.3

2.2

2.3

1.3

1.9

2.4

-0.4

1.2

1.6

-0.5

1.2

1.5

-0.4

1.1

1.8

1.9

2.5

3.2

1.9

2.8

3.0

1.9

2.1

3.0

Euro Area US

Annual Report 2013-14

The Global Economic Situation and Indiaâ&#x20AC;&#x2122;s External Sector

ANNUAL PERCENT CHANGE

Japan

1.5

1.4

0.9

1.5

1.4

1.0

1.5

1.3

Developing Countries/ EMDEs

4.6

4.7

5.1

4.7

4.9

5.3

4.8

5..4

Latin America and Caribbean (LAC)

2.7

2.6

3.4

2.7

2.5

3.0

2.4

1.9

2.9

Brazil

2.3

1.7

2.8

2.3

1.8

2.7

2.3

1.5

2.7

Russia

1.3

1.0

1.5

1.3

2.3

----

India

4.8

5.0

5.5

4.4

5.4

6.4

4.7

5.5

6.3

China

7.7

7.3

7.1

7.7

7.5

7.3

7.7

7.6

7.5

Sources: UN, World Economic Situation and Prospects, 2014; IMF, World Economic Outlook, April 2014; World Bank, Global Economic Prospects, June 2014.

Chapter-2

e= estimates, f=forecast, p=projections, â&#x20AC;&#x2DC;----â&#x20AC;&#x2DC; data not available.

On the other hand, investment will remain weak. The projected growth rate for EMDEs as per IMF stands at 4.9% for 2014 and 5.3% in 2015. The forecast for China by IMF stood at 7.5% in 2014. The IMF projection for China is similar to the projection made by Asian Development Bank, 2014 (ADB, 2014). For India the projection made by IMF stands at 5.4% in 2014, while according to ADB, 2014 India is expected to grow at the rate of 5.5% in 2014. Coming to Latin America, only modest improvement is expected for the region with growth projected at 2.5% and 3% for 2014 and 2015 respectively. For Russia growth prospects get affected by geopolitical risk. The projections for Russia stands at 1.3% and 2.3% for 2014 and 2015, respectively. II.

Global Trade: Changing patterns

The World Trade Report, 2013 by the World Trade Organization (WTO) highlights that trade has increased at a faster rate than global output. Developing countries have

gained importance, such that the share of the developing economies has risen to 47% of global exports in 2011 up from 34% in 1980. The major surge came from China making it the largest exporter with an increase in its share to 11% in 2011 from 1% in 1980. Regional trade gained importance. The share of intra-regional trade in Asian exports increased to 52% in 2011 from 42% in 1990, but intra-regional trade shares in Europe and North America have remained steady or declined. According to the report, it is important to measure trade in value added terms as international supply chains play a major role today. If measured in value-added terms, the contribution of services to international trade is much higher. III. Trade Slowdown Global trade growth reduced from 2.3% in 2012 to 2.1% in 2013. As per the WTO, global trade is expected to grow by 4.7% in 2014 and by 5.3% in 2015. However, the growth of

Annual Report 2013-14

announcement on tapering the quantitative easing policy stimulus.

As per the current rankings, India is the 19th largest exporter (with a share of 1.7%) and 12th largest importer (with a share of 2.5%) of merchandise trade in the world. China is the top ranked exporter and the US largest importer of merchandise trade in the world. In Commercial Services, India is the 6th largest exporter (with a share of 3.3%) and 7th largest importer (with a share of 2.9%). USA is the top exporter as well as the top importer of commercial services in the world.

However, external risk has considerably lowered after Q1 as Current Account Deficit (CAD) as a percentage of GDP came down to 0.2% in quarter four (Q4) of 2013-14 after declining from 4.9% in Q1. The main reason behind the decline was growth and improvement in exports and measures taken by government to curb import of gold. India’s exports began to improve after Q1 with economic recovery in key trading partners. On the other hand, imports contracted primarily due to sharp decline in import of gold.

Global trade prospects: As per the WTO, in 2014 exports growth will be fastest from Asia growing at a rate of 6.9%. Exports will be supported by rising import demand from developed countries with improvement in US and Europe. In 2015 merchandise trade is projected to grow by 5.3%, with developed and developing economies posting increases of 4.3% and 6.8% in exports as well as increase of 3.9% and 7.1%, respectively on the import side.

India’s merchandise exports reached a level of US$ 312.61 billion during 2013-14 (P) registering a growth of 4.1 percent as compared to a negative growth of 1.8 percent during the previous year. Despite the recent setback faced by India’s export sector due to global slowdown, merchandise exports recorded a Compound Annual Growth Rate (CAGR) of 15 percent from 2009-10 to 2013-14 (P).

IV.

India’s Trade

The global economic situation is a major determinant of export performance of any country, thus export growth cannot be viewed in isolation. With the global economy continuing to be volatile, India’s export growth performance in the last one and a half years has been much below the past trend. The current account deficit in India reached unsustainable levels as the Indian rupee came under heavy pressure in May following concerns raised by the US Federal Reserve

Annual Report 2013-14

The cumulative value of imports for the year 2013-14(P) was US $ 450.1 billion as against US $ 490.7 billion during the corresponding period of the previous year registering a negative growth of 8.3 per cent. India’s total merchandise trade as a percentage of GDP was 43.8 per cent in 2013-14. India’s merchandise exports as a percentage of GDP was 17.9 per cent in 2013-14. The trade deficit in 2013-14(P) was estimated at US $ 137.5 billion which was lower than the deficit of US $ 190.3 billion during 2012-13.

The Global Economic Situation and India’s External Sector

4.7% in 2014 is still below the 20 year (19832013) average of 5.3%.

Chapter-2

S trengthening India’s Growth and Exploring Newer Trade Terrains

External sector risks have been considerably lowered after Q1. With a gradual recovery in key partner economies, India’s exports began to improve after the first quarter supported by the depreciation of the rupee. The top items that have high share in India’s merchandise exports are petroleum products, gems and jewellery, transport equipment, machinery and instruments, drugs, pharmaceuticals and fine chemicals, manufactures of metals, cotton including accessories, cotton yarn fabrics madeups etc, electronic goods, plastic and linoleum. However, a major problem faced by India is the import dependence of exports. Import dependence is high in case of petroleum products and Gems and Jewellery. In terms of the current trends in economic growth, the aim of government is to broaden the scope of India’s trade and expand its potential to newer trade fields. In order to bring greater momentum to India’s growth process, focus has been on exploring wider and newer areas that have greater export potential. In this regard, two major areas which may be focused upon are: E-Commerce and Global Value Chains (GVCs). In the current global economic scenario, e-commerce has emerged as an innovative and rapidly expanding technique of promoting, selling and buying commodities. E-commerce means sale or purchase of goods and services conducted over network of computers by methods specifically designed for the purpose of receiving or placing orders. According to Internet and Mobile Association of India (IAMAI), the E-commerce market in

India has witnessed a CAGR of 54.6% during 2007-11 (IAMAI, Aranca Research). Most of the transactions in India are of Business to Business (B2B) nature. In India under the Business to Consumer (B2C) transaction, the travel segment accounts for 81.4% of the entire market in 2011. Greater scope exists in online retail with increased internet penetration and advent of 3G/4G telecom services. When it comes to Foreign Direct Investment in e-commerce category, views appear to be divided among various stakeholders. E-commerce including online retail constitutes a small fraction of total sales but is set to grow due to factors such as rising disposable incomes, rapid urbanization, rising youth population. Another potential area which may aid India’s economic growth is through linking India to GVCs. Participation of a country in GVCs can be assessed through what percentage of a country’s exports are part of GVCs. Two types of participation are backward participation (use of foreign intermediaries in India’s exports) and forward participation (use of Indian intermediaries in other countries exports). In case of India, backward participation is higher than forward participation (OECD-WTO Trade in Value Added (TiVA)). As per the Organisation for Economic Co-operation and Development (OECD), India participates in manufacturing GVCs for chemicals, electrical equipment and manufactures (e.g. jewellery). In case of services major participation is in business services, mainly driven by the use of Indian intermediaries in the exports of other

Annual Report 2013-14

countries. Policies are now being undertaken to encourage Indian producers to capture higher value from GVCs, so that they move up the value chain by performing value added activities.

GVCs are fast picking up in world markets and India is also integrating itself with changing world production structure. Policy makers are aiming at diversifying India’s markets in order to reap the benefits of growth in value added products and services. These newer avenues in the world market provide greater potential for India to strengthen its value added share in world trade. Interconnecting with economies in production chains will help build robust growth of manufacturing and services in India. Way Ahead Weak growth and exchange rate depreciation characterized the Indian economy in the initial months of 2013-14. The economy also witnessed a parallel widening of the current account deficit to 4.9 % of GDP in the Q1 of 2013-14. The economy bounced back such that the CAD narrowed sharply to US $ 1.2 billion (0.2% of GDP) in Q4 of 2013-14 from US $ 18.1 billion (3.6% of GDP) in Q4 of 2012-

Annual Report 2013-14

The economy is still grappling with issues which need to be addressed in order to further bring down the current account deficit. Thus, India has to deal with the twin issues of boosting exports and bringing down the import content of exports (reducing the dependence on foreign intermediaries for production). There is a need to make business entrepreneurs aware of the upcoming growth focus on enhancing exports from Micro Small and Medium Enterprises (MSME) Sector in areas such as: Pearls and precious stones, apparel and accessories, pharmaceutical products, leather goods, electrical & electronic equipment etc., along with emphasis on issues such as: Technology development, Standardization, Compliance Platform, Identifying and nurturing specific sectors with significant export potential etc. The WTO’s permits an exporting country to provide tax concessions on exported products and on inputs consumed in the production of the exported product. However, for the exporting country to avail all this benefit, exporters need to establish an unbroken trail of all indirect taxes paid on the exported product and on the inputs consumed in its production process. In the absence of uniform Goods and Services Tax (GST) in India, frequently exporters are unable to get rebate or drawback on all indirect taxes paid on the exported product and its inputs. This significantly enhances the final price of the exported product.

The Global Economic Situation and India’s External Sector

The gain from GVCs depends upon the value a country creates in GVCs. India specific indicators on GVCs based on OECD-WTO Trade in Value-Added (TiVA) database shows that India’s domestic value added content in final demand across countries was 74% in 2009, while the foreign value added share was 26% in 2009. On the other hand, share of India in value added exports was 1.9% of world exports in 2009.

13. The decline in CAD was primarily due to decline in import of gold and improvement in exports.

Chapter-2

The current global situation offers an opportunity for measures to strengthen the business environment, attract more Foreign Direct Investment (FDI), and increase productivity. These measures would include steps to reinforce the financial sector via capitalization and broader banking/financial sector reforms, simplifying the regulatory environment for firms, and strengthening fiscal balances through continued fiscal discipline and the adoption of GST. The reform momentum has accelerated in the last several months, and further steps to boost greater growth are expected to be undertaken to achieve medium term and long term growth targets. In the coming months, macroeconomic environment is expected to improve and growth is expected to accelerate gradually over the next two years. The situation provides

an opportunity to accelerate growth through promoting exports and enabling growth in upcoming market segments. The business and trade segments of e-commerce and global value chains provide an opportunity to compete at par with other world economies and expanding our technology base. The above findings underscore the imperative for extensive domestic reforms in all areas of logistics, manufacturing, fiscal, financial and overall economic performance on the part of both the government and industry, with targeted initiatives for improving infrastructure and international shipments required on a priority basis. In an increasingly globalised and integrated economy, unless domestic reforms, productivity, quality, standards related issues etc. are addressed and benchmarked against global competitors our exports cannot grow at the desired rate.

Annual Report 2013-14

Trends in India's Foreign Trade

India’s Trade Performance

World Trade Scenario As per IMF’s World Economic Outlook April 2014, world trade recorded its largest ever annual increase in 2010, as merchandise trade surged 14 per cent, but in the year 2012, it declined to 2.6 per cent and showed only a marginal improvement to 2.7 per cent in 2013. It however projects acceleration of world trade in goods in 2014 and 2015 with forecasted growth rates of 4.3 per cent and 5.3 per cent respectively. Growth in volume of world trade also increased marginally to 3 per cent in 2013 over 2.8 per cent in 2012 and is projected to accelerate further to 4.3 per cent and 5.3 per cent in 2014 and 2015 respectively. The IMF has put its growth projections of world output at 3.6 per cent in 2014. The advanced economies are expected to grow at 2.2 per cent while the emerging and developing economies to grow at 4.9 per

Annual Report 2013-14

Exports Exports recorded a growth of 4.06 per cent during Apr-Mar 2013-14. The Government had set an export target of US $ 325 billion for 2013-14. The merchandise exports have reached US $ 312.61 billion in 201314. Export target and achievement from 2004-05 to 2013-14 is given in the Chart 3.1 below: Imports Cumulative value of imports during 2013-14 was US $ 450.07 billion as against US $490.74 billion during the corresponding period of the previous year registering a negative growth of 8.29 per cent in $ terms. Oil imports were valued at US $ 167.62 billion during 201314 which was 2.2 per cent higher than oil imports valued at US $ 164.04 billion in the corresponding period of previous year. Nonoil imports were valued at US $ 283.32 billion during 2013-14 which was 13.3 per cent lower than non-oil imports of US $ 326.7 billion in previous year. Trade Balance The Trade deficit in 2013-14 was estimated at US $ 137.46 billion which was lower than the

Trends in India's Foreign Trade

India’s merchandise exports reached a level of US $ 312.61 billion during 2013-14 registering a growth of 4.06 percent as compared to a negative growth of 1.82 percent during the previous year. Despite the recent setback faced by India’s export sector due to global slowdown, merchandise exports still recorded a Compound Annual Growth Rate (CAGR) of 15.79 per cent from 2004-05 to 2013-14.

cent in 2014. The projected growth rates in different countries are expected to determine the markets for our exports.

Chart 3.1 Export Target & Achievement 400 350 300 250 US $ BILLION

200 150 100 50 0

2004- 2005- 2006- 2007- 2008- 2009- 2010- 20112005 2006 2007 2008 2009 2010 2011 2012

Export Target (US $ Bn)

100

125

160

200

175

200

2012- 201313 14

300

360

325

Chapter-3

Actually achieved (US $ Bn) 83.54 103.09 126.41 163.13 185.30 178.75 251.14 305.96 300.40 312.61

deficit of US $ 190.34 billion during 2012-13. Performance of Exports, Imports and Balance

of Trade during 2004-05 to 2013-14 is given in the table 3.1:

Table 3.1: Trade Data for period 2004-05 to 2013-14

(Rs crores)

S.No

Year

Exports

%Growth

Imports

%Growth

Trade Balance

2004-2005

3,75,340

27.94

5,01,065

39.53

-1,25,725

2005-2006

4,56,418

21.6

6,60,409

31.8

-2,03,991

2006-2007

5,71,779

25.28

8,40,506

27.27

-2,68,727

2007-2008

6,55,864

14.71

10,12,312

20.44

-3,56,448

2008-2009

8,40,755

28.19

13,74,436

35.77

-5,33,680

2009-2010

8,45,534

0.57

13,63,736

-0.78

-5,18,202

2010-2011

11,42,922

35.17

16,83,467

23.45

-5,40,545

2011-2012

14,65,959

28.26

23,45,463

39.32

-8,79,504

2012-2013

16,34,319

11.48

26,69,162

13.8

-10,34,843

2013-14(P)

18,94,182

15.9

27,14,182

1.69

-820,000

Data Source: DGCIS, Kolkata

Annual Report 2013-14

(USD Millions)

S.No

Year

Exports

%Growth

Imports

%Growth

1 2 3 4 5 6 7 8 9 10

2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-14(P)

83,536 1,03,091 1,26,414 1,63,132 1,85,295 1,78,751 2,51,136 3,05,964 3,00,401 312,610

30.85 23.41 22.62 29.05 13.59 -3.53 40.49 21.83 -1.82 4.06

1,11,517 1,49,166 1,85,735 2,51,654 3,03,696 2,88,373 3,69,769 4,89,319 4,90,737 450,068

42.7 33.76 24.52 35.49 20.68 -5.05 28.23 32.33 0.29 -8.29

Trade Balance -27,981 -46,075 -59,321 -88,522 -1,18,401 -1,09,621 -1,18,633 -1,83,356 -1,90,336 -137,458 Trends in India's Foreign Trade

Data Source: DGCIS, Kolkata

Chart 3.2 Month-Wise Year-on-Year Growth during 2013-14 over 2012-13 in $ terms

% Growth

20.00 15.00 10.00 5.00 0.00 -5.00 -10.00 % Growth during 2013-14 over 2012-13 in $ terms

APRIL

MAY

JUNE

JULY

AUGUS SEPTEM OCTOBE NOVEM DECEM JANUAR FEBRUA MARCH T BER R BER BER Y RY

2.36

0.17

-3.82

11.80

13.93

Exports by Principal Commodities Disaggregated data on exports by Principal Commodities, both in Rupee and Dollar terms, available for the period 2013-14 as compared to 2012-13 are given in Table 3.1 and Table 3.2 respectively. Exports of the top five commodities during the period 2013-14 registered a share of 50.05 per cent mainly

Annual Report 2013-14

12.94

14.26

3.56

3.70

4.03

-5.19

-4.80

due to significant contribution in the exports of Petroleum (Crude & Products), Gems & Jewellery, Transport Equipments, Machinery and Instruments and Drugs, Pharmaceuticals & Fine Chemicals. The share of top five Principal Commodity Groups in Indiaâ&#x20AC;&#x2122;s total exports during 201314 is given at Chart 3.3 below:

Chart 3.3 Share of Top Five Commodities in India's Export 2013-14

PETROLEUM (CRUDE & PRODUCTS)

20.05

GEMS & JEWELLARY TRANSPORT EQUIPMENTS 50.0

MACHINERY AND INSTRUMENTS

13.15

DRUGS,PHRMCUTES & FINE CHEMLS

6.85 5.19

4.81

Chapter-3

Others

The export performance (in terms of growth) of top five commodities during 2013-14 vis-a-

vis the corresponding period of the previous year is shown in Chart 3.4.

Chart 3.4 Growth of Top Five Exports during 2012-13 & 2013-14 Apr-Mar 2012-13 %Growth

Apr-Mar 2013-14 %Growth

16.47 11.13

8.60

7.13 3.00

5.93

5.63 2.58

PETROLEUM (CRUDE GEMS & JEWELLARY & PRODUCTS) -3.44

-5.18

TRANSPORT EQUIPMENTS

MACHINERY AND DRUGS,PHRMCUTES INSTRUMENTS & FINE CHEMLS

Others

-5.32

-14.12

Plantation Crops Export of Plantation crops during 2013-14, decreased by 8.17 per cent in US $ terms compared to 2012-13. Export of Coffee registered a negative growth of 7.81 per cent, the value decreasing from US $ 866.13

million to US $ 798.49 million. Export of Tea also decreased by 8.54 per cent. Agriculture and Allied Products Agriculture and Allied Products as a group include Cereals, Pulses, Tobacco, Spices, Nuts

Annual Report 2013-14

and Seeds, Oil Meals, Guargum Meal, Castor Oil, Shellac, Sugar & Molasses, Processed Food, Meat & Meat Products, etc. During 2013-14, exports of commodities under this group registered a growth of 0.81 per cent with the value of exports increasing from US $ 32,017.27 million in 2012-13 to US $ 32,277.59 million during 2013-14. Ores and Minerals

Leather and Leather Manufactures Export of Leather and Leather Manufactures recorded a growth of 16.49 per cent during 2013-14. The value of exports increased to US $ 5,687.63 million in 2013-14 from US $ 4,882.35 million in 2012-13. Exports of Leather and Manufactures have registered a growth of 13.71 per cent and Leather Footwear registered a growth of 20.35 per cent. Gems and Jewellery The export of Gems and Jewellery during 2013-14 decreased to US $ 41,100.13 million from US $43,344.85 million in 2012-13 showing a negative growth of 5.18 per cent. Chemicals and Related Products During the period 2013-14, the value of exports of Chemicals and Related Products increased to US $ 43,755.48 million from US

Annual Report 2013-14

Engineering Goods Items under this group consist of Machinery, Iron & Steel and Other Engineering items. Export from this sector during the period 2013-14 stood at US $ 61,623.50 million compared with US $ 56,796.94 million in 2012-13, registering a positive growth of 8.5 per cent. The growth in export of Residual engineering items stood at 22.79 per cent, Aluminium other than products stood at 28.6 per cent, Primary & Semi-finished iron & steel stood at 23.95 per cent, Transport equipments stood at 16.47 per cent and Machinery and Instrument 5.93 per cent. Electronic Goods During the period 2013-14, exports of Electronic Goods as a group was estimated at US $7,690.68 million compared with US $ 8,442.77 in 2012-13, registering a negative growth of 8.91 per cent Textiles During the period 2013-14, the value of Textiles exports was estimated at US $ 30,379.55 million compared with US $26,362.39 million in 2012-13, recording a positive growth of 15.24 per cent. The export of Natural Silk Textiles, Wool and Woolen manufactures and Jute manufactures registered negative growth of 8.95 per cent, 7.15 per cent and 3per cent respectively. However, Readymade Garments, Cotton yarn/Fabrics/Made-ups etc., Manmade Textiles & Made Ups etc, Coir

Trends in India's Foreign Trade

Exports of Ores and Minerals were estimated at US $ 5,604.22 million during 2013-14 registering a negative growth of 0.48 per cent over 2012-13. Sub groups viz. Iron Ore, and mica have recorded a negative growth of 5.45 per cent and 0.57 percent respectively. Processed minerals, other ores and minerals and coal registered a growth of 1.76 per cent, 1.59 per cent and 0.4 per cent respectively.

$ 41,504.68 million in 2012-13 registering a growth of 5.42 per cent. Rubber, Glass & Other Products, Basic Chemicals, Pharmaceuticals & Cosmetics, Plastic and linoleum and residual chemicals & allied products have registered a positive growth.

and coir manufactures registered a positive growth of 15.53 per cent, 18.11 per cent, 12.85 per cent and 16.89 per cent respectively.

2012-13 recording a positive growth of 3 per cent.

Handicrafts and Carpets

There was a negative growth in the exports of Cotton Raw including waste by 3.33 per cent from US $ 3,747.73 million in 2012-13 to US $3,622.89 million during 2013-14.

Exports of Handicrafts increased to US $ 277.13 million during 2013-14 from US $ 203.76 million in 2012-13 registering a positive growth of 36.01 per cent. Export of carpets increased to US $ 1037.11 million from US $ 988.14 million during the same period last year registering a growth of 4.96 per cent.

Chapter-3

Project Goods During 2013-14, the export of Project Goods were estimated at US $ 39.65 million compared with US $ 145.97 million in 201213 registering a negative growth of 72.84 per cent. Petroleum Products Export of Petroleum Products increased to US $ 62,685.29 million during 2013-14, as compared with US $ 60,859.81 million in

Cotton Raw including Waste

Imports by Principal Commodities Disaggregated data on imports by principal commodities, both in Rupee and Dollar terms, available for the period 2013-14, as compared 2012-13 are given in Table 3.5 and Table 3.6 respectively. Imports of the top five commodities during the period 2013-14 registered a share of 60.58 per cent mainly due to significant imports of Petroleum (Crude & Products), Electronic Goods, Gold, Pearls, precious and semi-precious stones and Machinery except electrical and electronic. The share of top five Principal Commodity in Indiaâ&#x20AC;&#x2122;s total imports during 2013-14 is given at Chart 3.5 below:

Chart 3.5 Share of Top Five Commodities in India's Imports 2013-14

PETROLEUM, CRUDE & PRODUCTS 36.7

39.4

ELECTRONIC GOODS GOLD PERLS PRCUS SEMIPRCS STONES MACHRY EXCPT ELEC & ELECTRONIC Others

5.3

6.9 5.3

6.4

Annual Report 2013-14

The import performance by growth of top five Principal commodities during 2013-14 vis-a-

vis the corresponding period of the previous year is shown at Chart 3.6.

Chart 3.6 Growth of Top Five Imports during 2012-13 & 2013-14 Apr-Mar 2012-13 % Growth

Apr-Mar 2013-14 % Growth 5.9

5.9

2.3

0.7 PETROLEUM, CRUDE & ELECTRONIC GOODS -1.4 PRODUCTS -4.0

GOLD

-4.8

PERLS PRCUS SEMIPRCS STONES

MACHRY EXCPT ELEC & ELECTRONIC

-8.2

Others

-7.2

-14.3 -19.6

Fertilizers During 2013-14, import of Fertilizers decreased to US $ 6,469.27 million from US $ 9,074.95 million in 2012-13 recording a negative growth of 28.71 per cent. Petroleum Crude & Products The import of Petroleum Crude & Products stood at US $ 165,148.10 million during 201314 as against US $ 164,040.56 million in 201213 registering a growth of 0.68 per cent. Pearls, Precious and Semi-Precious Stones Import of Pearls and Precious and SemiPrecious Stones during 2013-14 increased to US $ 24,001.39 million from US $ 22,666.61 million in 2012-13 registering an increase of 5.89 per cent. Capital Goods Import of Capital Goods, largely comprises of Machinery, including Transport Equipment

Annual Report 2013-14

and Electrical Machinery. Import of Machine Tools, Machinery other than electrical, Electrical Machinery and Transport Equipment registered a negative growth of 25.56 per cent, 14.32 per cent, 2.06 per cent, and 12.86 per cent respectively. Organic and Inorganic Chemicals During 2013-14, import of Organic and Inorganic Chemicals increased to US $ 20,213.03 million from US $ 19,319.84 million in 2012-13, registering a growth of 4.62 per cent. Import of Medicinal and Pharmaceutical Products decreased to US $ 2,973.83 million in 2013-14 from US $ 3,117.96 million in 2012-13 registering a negative growth of 4.62 per cent. Coal, Coke & Briquettes During 2013-14, import of Coal, Coke & Briquettes decreased to US $ 16,431.87 million from US $ 16,995.89 million in

Trends in India's Foreign Trade

-46.3

2012-13, registering a negative growth of 3.32 per cent. Gold & Silver During 2013-14, import of Gold and Silver decreased to US $ 33,430.94 million from US $ 55,793.71 million in 2012-13 registering a negative growth of 40.08 per cent. Direction of India’s Foreign Trade

Chapter-3

The value of India’s exports and imports from major regions/ countries both in Rupee and Dollar terms are given in Table 3.3,3.4, 3.7 and 3.8 respectively. Share of major destinations of India’s Exports and sources of Imports during 2013-14 are given in Chart 3.7 and 3.8 respectively.

Asia, Other West Asia, North East Asia and South Asia accounted for 49.67 per cent of India’s total exports. The share of Europe and America in India’s exports stood at 18.65 per cent and 17.35 per cent respectively of which EU countries (27) comprises 16.5per cent. During the period, USA (12.53 per cent) has been the most important country of export destination followed by UAE (9.76 per cent), China P RP (4.76 per cent), Hong Kong (4.07 per cent) and Singapore (4 percent).

During the period 2013-14, the share of Asia comprising of East Asia, ASEAN, West

Asia accounted for 60.87 per cent of India’s total imports during the period followed by Europe (15.7per cent) and America (12.91 per cent). Among individual countries the share of China stood highest at (11.33 per cent) followed by Saudi Arabia (8.12 per cent), UAE (6.47 per cent), USA (4.96 per cent) and Switzerland (4.31 per cent).

Chart 3.7 Major Destinations of India's Exports for 2013-14

Chart 3.8 Major Sources of India's Imports for 2013-14 11.33

12.53

8.12

9.76

6.47

4.76

4.96

4.07

64.9

64.81

4.31

USA

U ARAB EMTS

CHINA P RP

SAUDI ARAB

U ARAB EMTS

HONG KONG

SINGAPORE

REST OF WORLD

USA

SWITZERLAND

REST OF WORLD

Annual Report 2013-14

External Sector and India’s Foreign Trade Policy (FTP) 2009-14

Interactions on a regular basis are held with members of Board of Trade, EPCs and exporters for sectoral assessment of exports at regular intervals. The Sectoral assessment was undertaken in December 2010, July 2011, February 2012 and March 2012 which demonstrated that some sectors were still facing difficulties. Need-based additional support measures were announced on 11th February, 2011, 13th October, 2011, in the Annual Supplement to Foreign Trade Policy released on 5th June, 2012 and on 18th April, 2013. To provide continuity in policy environment, the existing Foreign Trade Policy 2009-14 has been extended beyond 31.03.2014 until further orders

Scheme-wise details Duty neutralization / remission schemes are based on the principle and the commitment

Annual Report 2013-14

of the Government that “Goods and Services are to be exported and not the Taxes and Levies”. Purpose is to allow duty free import / procurement of inputs or to allow replenishment either for the inputs used or the duty component on inputs used. Brief of these schemes along with the amendments carried out during the current year are given below. (i)

Advance Authorization Scheme

Scheme allows duty free import of Inputs, along with fuel, oil, and catalyst etc., required for manufacturing the export product. Inputs are allowed either as per Standard Input Output Norms (SION) or on adhoc Norm’s basis under Actual User condition. Norms are fixed by Technical Committee i.e., Norms Committee. This facility is available for physical exports (also including supplies to SEZ units & SEZ Developers) and deemed exports including intermediate supplies. Minimum value addition prescribed is 15%, except for certain items. Exporter has to fulfill the export obligation over a specified time period, both quantity and value wise. The facilities to club authorizations were simplified and powers decentralized to RAs. Certain items which are prohibited for export have been allowed for export under advance authorization scheme, subject to stipulated conditions. An option has been provided for redemption/ regularization of old cases/pending cases of default in meeting Export Obligation

External Sector and India’s Foreign Trade Policy (FTP) 2009-14

In view of the decline in export growth (as an immediate relief), the Government provided a policy environment through a mix of measures including fiscal incentives, institutional changes, procedural rationalization, and efforts for enhanced market access across the world and diversification of export markets. Towards achieving these objectives, several steps were announced in the Policy through measures announced under FTP 2009-14, January / March, 2010, Annual Supplement, 2010-11 and 2012-13 and 2013-14.

(EO) by authorisation holder on payment of applicable customs duty, corresponding to the shortfall in export obligation, along with interest on such customs duty, the interest component to be so paid would not exceed the amount of customs duty payable for this default.

Chapter-4

(ii)

Duty Free Import Authorization (DFIA)

DFIA Scheme has been made operational from 01.05.2006. One of the objectives of the scheme is to facilitate transfer of the authorization or the inputs imported as per SION, once export is completed. Provisions of DFIA Scheme are similar to Advance Authorization scheme. A minimum value addition of 20% is required under the scheme. (iii) Schemes for Gems & Jewellery Sector Gems & Jewellery exports constitute a major portion of our total merchandise exports. It is an employment oriented sector. Exports from this sector suffered significantly on account of the global economic slowdown. Duty free import / procurement of precious metal (Gold / Silver / Platinum) from the nominated agencies are allowed either in advance or as replenishment. In addition, exporters of Gems & Jewellery items are allowed access to duty Free Import of consumables for export production up to a certain specified percentage of FOB value of previous yearsâ&#x20AC;&#x2122; export. List of items allowed for duty free import by Gems & Jewellery sector had been expanded by inclusion of additional items such as Tags and labels, Security censor on card, Staple wire, and Poly bag. This will reduce the cost of the product to some extent.

Duty Drawback Scheme Duty Drawback Scheme allows refund of customs duty and the excise duty on the inputs used in the manufacture of the export product at a specified percentage of FOB value of exports. Service Tax on the input services has also been factored in the All Industry rate of Duty Drawback. Duty Drawback Scheme for physical exports is being administered by the Department of Revenue and that of deemed exports, by the DGFT. (iv) Other Policy Initiatives Interest subvention scheme was earlier available only to Handlooms, Handicrafts, SMEs and carpets. In June 2012, it had been extended to labour intensive sectors, namely, Toys, sports goods, processed agricultural products, and readymade garments, in addition to the four sectors benefitting from the scheme earlier. With effect from 1st January, 2013, the scheme had been extended to 134 sub-sectors of engineering sector. The validity of the scheme had also been extended till March 31, 2014. The scheme has been further widened to cover 101 tariff lines of engineering sector and 6 tariff lines of Chapter 63 of ITC (HS) (Textiles Made ups) w.e.f. 1st April, 2013. Further, Government has enhanced the rate of subvention from present 2% to 3% with effect from 1st August, 2013.

Vishesh Krishi and Gram Udyog Yojana (Special Agriculture and Village Industry Scheme) [VKGUY] Objective of this scheme is to promote employment generation in rural and semi urban areas. Duty Credit Scripâ&#x20AC;&#x2122;s are granted

Annual Report 2013-14

with an aim to compensate high transport costs, and to offset other disadvantages. Vishesh Krishi and Gram Udyog Yojana has been gradually expanded to include export of Agricultural Produce and their value added products; Minor Forest Produce and their value added variants; Gram Udyog Products; and Other Products, as notified under Appendix 37A of HBP vol.1, from time to time.

In case of Status Holder, higher incentive is available in the form of duty credit scrip (Agri. Infrastructure Incentive Scrip) equal to 10% of FOB value of agricultural exports, limited to Rs. 100 crore per annum, for products covered under ITC HS Chapters 1 to 24. This includes incentive under VKGUY scrip. This scrip’s can be utilized to import Capital Goods and equipments for Cold Storage Units, Packhouses etc. This scrip’s will also be eligible for import of following specified equipments for setting up of Pack-houses: i.

Packing grading equipments for fruits and vegetables

ii. Equipments for ripening of including ethylene generator

fruits

iii. Adiabatic humidifiers for cold rooms iv. Gas sensor and controlled system covering Co2, ethylene and oxygen levels

Annual Report 2013-14

Ethylene scrubbers

vi. Co2 scrubbers vii. Blast freezers for IQF plants viii. Doors for gastight rooms, applications like CA, Banana/fruit ripening ix. Nitrogen generators x. Gas controlling systems for CA stores xi. Bulk bins for CA stores xii. Reach stackers for cold stores and warehouses xiii. Belt driven conveyors for bulk handling of cargo xiv. Gantry cranes, unloading, mechanized loaders for bulk and break bulk cargo For import of Cold Chain Equipment, this Incentive Scrip shall be freely transferable amongst Status Holders as well as to Units in the Food Parks. Now transferability of the Agric Infrastructure Incentive Scrip shall be allowed to supporting manufacturer of the status holder. Such transferability would have to be endorsed on the Agri. Infrastructure Incentive Scrip from relevant RA.

FOCUS MARKET SCHEME [FMS] For offsetting high freight cost and other externalities to select international markets with a view to enhance India’s export competitiveness in these countries, “Focus Market Scheme” has been launched w.e.f. 1.4.2006. Exporters of all products to notified countries (as in Table 1 & Table 2 of Appendix 37C of HBP vol.1) shall be entitled for Duty Credit Scrip equivalent to 3% of FOB value of exports. Cayman Islands, Newzealand, Latvia, Lithuania, Bulgaria (w.e.f. 1.1.2013) and Norway (w.e.f. 1.5.2013) have been

External Sector and India’s Foreign Trade Policy (FTP) 2009-14

Exporters of notified products are entitled for Duty Credit Scrip equivalent to 5% of FOB value of exports (in free foreign exchange) for exports made from 27.8.2009 onwards. Few products are also eligible to additional 2% over & above the 5% as admissible for specified products in Appendix 37A of HBP vol.I.

added to Focus Market Scheme (FMS). The scheme now covers a total of 125 markets. Additional duty credit scrip @1% FOB value of exports is given to markets listed in Table 3 of Appendix 37C with effect from 1.4.2011 under Special Focus Market Scheme. 2 new markets have been added to the Special Focus Market Scheme (Special FMS) taking the total countries under Special FMS to 50. These countries are Eritrea (w.e.f. 1.1.2013) and Venezuela (w.e.f. 1.5.2013).

Chapter-4

FOCUS PRODUCT SCHEME [FPS] To incentivize export of such products which have high export intensity / employment potential, so as to offset infrastructure inefficiencies and other associated costs involved in marketing of these products, a Scheme called Focus Products Scheme, has been introduced w.e.f. 1.4.2006. Exports of notified products (as in Appendix 37D of HBP vol.1) to all countries (including SEZ units) shall be entitled for Duty Credit Scrip equivalent to 2% or 5% of FOB value of exports (in free foreign exchange) for exports made from 27.8.2009 onwards. Further, Bonus Benefits @2% of FOB value of exports is given over and above the existing benefit for specified products covered under Appendix 37D for exports made from 1.4.2010 onwards. So far, more than 1000 products have been covered at 8 digit level under the Scheme, which include leather products and footwear, handloom products, handmade carpets and other textile floor covering, handicrafts, coir and jute products, technical textiles, engineering products, green technology products, electronic products, etc.

MARKET LINKED FOCUS PRODUCTS SCRIP [MLFPS] To give significant boost to market penetration of specific product in specified markets, a variant under Focus Product Scheme called Market Linked Focus Products Scrip has been introduced from 1.4.2008. Export of products / sectors of high export intensity / employment potential (which are not covered under present FPS List) would be incentivized @ 2% of FOB value of exports (in free foreign exchange) under FPS when exported to the Linked Markets (countries), which are not covered in the present FMS List, as notified in Appendix 37D of HBP vol.1, for exports made from 27.8.2009 onwards. Further, all Garments covered under Chapter 61 and Chapter 62 of ITC HS Classification of Export and Import Items have been extended the benefit of duty credit scrip @2% of FOB value of exports to USA and EU from 1.4.2011 till 31.3.2012. This benefit has now been extended till 31st March 2014. Presently the products covered under the scheme include Motor vehicles, autocomponents, bicycles and parts, apparels, knitted and crocheted fabrics, pharma products, value added plastic and rubber goods, glass products, dyes and chemicals, household articles, Machine Tools, Earth Moving equipments, Transmission towers, electrical and power equipments, steel tubes, pipes and galvanized sheets, Compressors, Iron and Steel Structures, Auto components, Three wheelers and cotton woven fabrics etc. The countries covered under the Scheme include Algeria, Egypt, Kenya, Nigeria, South Africa, Tanzania, Brazil, Ukraine, Australia, New Zealand, Cambodia, Vietnam, Japan and

Annual Report 2013-14

China amongst others. There are around 5000 products so far covered at 8 digit level. Table 2 of Appendix 37D of HBP vol. I may be referred for the list of products and countries. Under table 3 of Appendix 37-D, some new items under Textile & Leather category are added in the scheme for export between 01.03.2014 to 31.08.2014.

The objective of the Scheme is to accelerate growth in export of services so as to create a powerful and unique ‘Served from India’ brand, instantly recognized and respected the world over. Indian Service Providers, of services listed in Appendix 41 of HBP vol.1, which has free foreign exchange earning of at least Rs.10 lakhs in current financial year shall qualify for Duty Credit Scrip. For Individual Indian Service Providers, minimum free foreign exchange earnings would be Rs. 5 lakhs. Service Providers are entitled to Duty Credit Scrip @10% of the free foreign exchange earned. However, Services and Service Providers listed in Para 3.6.1 of Hand Book of Procedures vol.1 are not eligible. Import are allowed with actual user condition for import of capital goods, office equipments, consumables, vehicles which are in the nature of professional equipment to the service provider, etc. SFIS scrip’s can be utilized for purchase of Motor vehicles. It can also be used for manufacturing sector business of the service provider. With effect from 18.4.2013, SFIS benefit is based on Net Foreign Exchange earned. Now Goods imported / procured against SFIS scrip’s can be alienated on completion of 3 years from the date of import / procurement.

Annual Report 2013-14

With an objective to promote investment in up gradation of technology of some specified sectors such as leather, textiles, Jute, handicrafts, plastics, basic Chemicals, rubber products, glass and glassware, paper and books, paints and allied products, plywood and allied products, electronics products, sports goods and toys, engineering products viz. iron and steel, pipes and tubes, Ferro-alloys etc., Status Holders shall be entitled to a scrip @ 1% of FOB value of exports. During 2009-10 SHIS is entitled for six sectors, viz: Leather Sectors (excluding finished leather); Textiles and Jute Sector; Handicrafts; Engineering Sector (excluding Iron & Steel, Non-ferrous Metals in primary or intermediate forms, Automobiles & two wheelers, nuclear reactors & parts and Ships, Boats and Floating Structures); Plastics; and Basic Chemicals (excluding Pharma Products), and later expanded for exports in 2010-11, 2011-12 and 2012-13 with addition of sectors listed in Para 3.10.8 of Hand Book of Procedures vol.1, [subject to prescribed exclusions as specified in Policy] with actual user condition. This shall be over and above any duty credit scrip claimed/availed under Chapter-3 of FTP. Status holders are issued Status Holders Incentive Scrip (SHIS) to import Capital Goods for promoting investment in up-gradation of technology of some specified lab our intensive sectors like Leather, Textile & Jute, Handicrafts, Engineering, Plastics and Basic Chemicals. It is now decided that up to 10% of the value of these scrip’s will be allowed to be utilized to import components and spares

External Sector and India’s Foreign Trade Policy (FTP) 2009-14

SERVED FROM INDIA SCHEME [SFIS]

STATUS HOLDERS INCENTIVE SCRIP (SHIS)

of capital goods imported earlier. Such a dispensation was not available earlier.

EPCG Scheme:

These scripts were subject to Actual User Condition and were not transferable. Since a status holder may or may not have manufacturing facility, limited transferability of SHIS has been allowed. However, such Transferee shall have to (a) be a status holder and (b) have manufacturing facility.

•

The scheme allows import of capital goods on zero duty for pre-production, production and post production as well as for computer software systems subject to an export obligation(EO) equivalent to 6 times of duty saved amount to be fulfilled in 6 years reckoned from Authorization issue-date. However, Authorization under EPCG Scheme shall not be issued for import of any Capital Goods (including Captive plants and Power Generator Sets of any kind) for Export of electrical energy (power), Supply of electrical energy (power) under deemed exports, Use of power (energy) in own unit, and Supply/export of electricity transmission services. Import of 2nd hand Capital Goods is not permitted under this scheme.

•

The scheme also allows import of spares, moulds, dies, jigs, fixtures, tools and refractory for initial lining; for existing plant and machinery (imported earlier, under EPCG or otherwise). However, import of spares is not allowed in respect of capital goods sourced indigenously.

•

The scheme also requires maintenance of average level of exports achieved by the exporter in the preceding three licensing years for the same and similar products within the overall export obligation period including extended period, except for certain specified sectors/ products as per Para 5.7.6 of Handbook of Procedures.

Changes in Zero duty EPCG Scheme.

Chapter-4

SHIS can be transferred to a manufacturer group company of the scrip holder even though the group company is not a status holder. Group Company is defined in Para 9.28 of FTP. Such transfer will have to be endorsed by relevant RA. The above 31.03.2013.

scheme

has

sunset

Incentive on Incremental Exports It has been decided to grant incentive on incremental exports made during the period January-March 2013 over the base period January-March 2012. The incentive would be granted to an IEC holder at the rate of 2% on the incremental growth of exports made to USA, EU and Asian Countries during this particular quarter i.e., January-March 2013. Certain exports like deemed exports, service exports, third party exports, export-turnover of SEZ units etc. would not be eligible under the scheme. Focus is on increasing export to certain specific destinations. Incremental Exports Incentivisation Scheme (IEIS) has been extended for the year 2013-14. 53 Latin American and African countries have been added in the list w.e.f. 1.4.2013.

Annual Report 2013-14

EPCG Authorization can also be issued for import of capital goods under Scheme for Project Imports. Export obligation for such EPCG authorizations would be six times of duty saved.

•

The scope of the EPCG scheme has been extended to Common Service Providers (CSP) who are designated / certified as a Common service Providers by the DGFT, Department of Commerce or State Infrastructural Corporation in a Town of Export Excellence. The Bank Guarantee (BG) shall not exceed the duty saved and can be given by CSP or by any one of the users or a combination thereof, at the option of the CSP.

•

A person holding an EPCG license may source the capital goods from a domestic manufacturer instead of importing them. The domestic manufacturer supplying CG to EPCG authorization holder shall be eligible for deemed export benefits under Para 8.3 of the Policy.

•

EPCG license may be issued for retail sector for import of capital goods required by the retailer to create modern infrastructure in the retail sector.

•

EPCG Authorizations holders can opt for Technological up-gradation of existing Capital goods imported under EPCG authorizations subject to conditions stipulated in Para 5.8 (a) to (e) of FTP.

•

(ix) Authorization holder shall produce to the concerned RA a certificate from the Jurisdictional Central Excise Authority, confirming installation of Capital Goods at factory /premises of authorization holder or his supporting manufacturer(s) /vendor(s) within six months from date

Annual Report 2013-14

of completion of import. However, extension in time for Installation of Capital Goods upto a maximum period of 18 months from the date of completion of import may be considered by the concerned RA.” •

Specific EO in respect of export of Green Technology Products shall be 75% of the normal EO as mentioned in the Para 5.1 of FTP. The list of Green Technology products is given in Para 5.23 of HBP v1.

•

For units located in J&K, North Eastern Region including Sikkim, specific EO shall be 25% of the EO as stipulated in Para 5.1 of FTP.

•

The validity period for import of capital goods under zero duty EPCG Scheme is 18 months.

EPCG authorization for annual requirement EPCG Authorization can also be issued for annual requirement to exporters having past export performance (in preceding two years). The annual entitlement in terms of duty saved amount shall be up to 50% of FOB value of Physical Export, Service Exports and / or FOR value of Deemed Export, in preceding licensing year. Export Obligation (EO) conditions under EPCG Scheme •

EO is to be fulfilled by export of goods manufactured/service(s) rendered by applicant.

•

Exports shall be physical exports. Certain deemed exports will also be counted towards fulfillment of EO.

External Sector and India’s Foreign Trade Policy (FTP) 2009-14

•

Chapter-4

•

The export obligation under the Scheme shall be over and above, the average level of exports achieved by the EPCG authorization holder in the preceding three licensing years for the same and similar products within the overall export obligation period including extended period, other than the categories exempted for this purpose. There is no request of maintaining average EO for certain sectors like handicraft, handlooms, cottage, tiny sector, agriculture, aqua-culture (including fisheries), animal husbandry, floriculture, horticulture, pisciculture, viticulture, poultry, sericulture, Carpets, coir and Jute. Extension in EO period may be granted for a period of 2 years subject to certain conditions specified in Para 5.11 of HBP.

•

For BIFR units, EO period may be extended as per BIFR package or 9 years, if not specified by BIFR.

•

Wherever the holder of any EPCG Authorization is granted relief under Corporate Debt Restructuring (CDR), then such Authorization holder may be allowed EO extension of 3 years (from the date of approval of the CDR mechanism/scheme). Such extension in EO will not attract any Composition fee and will be in addition to (and not in lieu of) the granting of EO extension, if any, available under Para 5.11 of HBP v1.

•

Import of Capital Goods shall be subject to Actual User Condition till EO is completed.

Post Export EPCG Duty Credit Scrip(s) A new scheme ‘Post export EPCG Duty Credit Scrip(s)’ has been introduced w.e.f. 05.06.2012 with following salient features: (a) EPCG Duty Remission Scheme shall be available to exporters who intend to import/ procure capital goods on full payment of applicable duties and choose to opt for this scheme. (b) Duty paid on capital goods (excluding portion CENVATed/ Rebated) shall be remitted in the form of freely transferable duty credit scrip(s). (c) Specific EO under this scheme shall be 85% of the applicable specific EO, if the imports of such capital goods had taken benefit of duty exemption. (d) Duty remission shall be in proportion to the EO fulfilled. (e) These duty credit scrip(s) can be used for payment of applicable custom duties for imports and applicable excise duties for domestic procurement. (f) All provisions of the existing EPCG scheme shall apply insofar as they are not inconsistent with this scheme.

Export Oriented Units Export Oriented Units (EOUs), Electronics Hardware Technology Parks (EHTPs), Software Technology Parks (STPs) and BioTechnology Parks (BTPs) Units undertaking to export their entire production of goods and services (except permissible sales in DTA), may be set up under the Export Oriented Unit (EOU) Scheme, Electronic Hardware Technology Park (EHTP)

Annual Report 2013-14

Scheme, Software Technology Park (STP) Scheme or Bio-Technology Park (BTP) Scheme for manufacture of goods, including repair, re-making, reconditioning, re-engineering and rendering of services. Trading units are not covered under these schemes.

A Committee under the Chairmanship of Shri S.C. Panda, the then DC, NSEZ was constituted by Department of Commerce in December, 2010 to review and revamp the EOU Scheme. The Committee submitted its report in July, 2011. The Department of Commerce have examined this Report and have decided to accept certain recommendations. Necessary action has already been initiated to suitably incorporate these recommendations in the forthcoming Foreign Trade Policy for the period 2014-2019. Department of Commerce and Department of Electronics and Information Technology (DeitY) notified the Electronics Hardware Technology Park (EHTP) and the Software Technology Park (STP) schemes in 1992 and 1994 respectively and both these schemes were notified as 100% EOU Schemes under

Annual Report 2013-14

Deemed Exports “Deemed Exports” refer to those transactions in which goods supplied do not leave country, and payment for such supplies is received either in Indian Rupees or in free foreign exchange. Deemed Exports Scheme is for encouraging import substitution and mainly covers such supply of goods which are otherwise allowed at Zero custom duty. For deemed exports supplies, benefit of advance authorization, duty drawback of taxes paid on inputs and refund of terminal excise duty paid on final goods / exemption, as applicable as per Foreign Trade Policy, are available. Based upon the inputs / suggestions received from the Apex Chambers of Commerce &

External Sector and India’s Foreign Trade Policy (FTP) 2009-14

An EOU / EHPT / STP / BTP unit may export all kinds of goods and services except items that are prohibited in ITC(HS) and may import / or procure, from DTA or bonded ware houses in DTA / international exhibition held in India, without payment of duty, all types of goods, including capital goods, required for its activities, provided they are not prohibited items of import in the ITC(HS). All these units shall be a positive net foreign exchange earner except for sector specific provision of Appendix 14-I-C of HBP Volume I, where a higher value addition shall be required.

the Exim policy of the Ministry of Commerce and Industry. The two schemes are administered by the Inter Ministerial Standing Committee (IMSC) under the Chairmanship of Secretary, Deity. IMSC in its meeting held on 5th July, 2012 resolved that the STP and EHPT schemes need to be revamped in order to give a push to IT / ITES and ESDM sectors. Accordingly, the IMSC constituted a SubGroup comprising of the members Dr. Omkar Rai, DG, STPI, Shri Manoj K. Arora, ADG, DGEP and Dr. L.B. Singhal, ADG, DGFT to review the two schemes and suggest changes that are required to revamp the same. Based on the discussions and the inputs provided by the industry, the Sub-Group has made a number of suggestions for revamping the STP and EHPT schemes. In April, 2013 Sub-Group of the Inter-Ministerial Standing Committee has submitted their report on revision of the STP and EHPT Schemes. The report in this regard is under consideration with DeitY.

Chapter-4

Industries, FIEO, EPCs & internal deliberations, the provisions of deemed exports were rewritten and notified on 05.06.2012. These provisions have been aligned with the corresponding customs notification. The clarifications issued by the Policy Interpretation Committee have been incorporated. The benefits available for deemed exports under different categories have been consolidated in a tabulated form, under para 8.4 of FTP. Policy Circular No.15 dated 21.02.2013 has been issued clarifying benefits for supplies against ARO / Invalidation. Similarly, Policy Circular No.16 dated 15.03.2013 has been issued making it clear that where ab-initio exemption of duties is available, no refund of TED will be provided. Notification No.4 dated 18.04.2013 has been issued incorporating the changes made under paras 8.3 & 8.4 of FTP. Policy Circular No.9 dated 30.10.2013 has been issued clarifying the applicability of duty drawback as per col ‘B’ of All Industry Rate and requirement of certificate regarding CENVAT declaration as contained in the Public Notice No. 35 dated 01.03.2011.

work and processing time related to export promotion schemes. All 36 Regional offices of DGFT, spread throughout India have been computerized and connected through Central Server. Networking of these offices through high speed Broadband/Lease Line has enabled integration of various applications, message exchange and data bases (in respect of exporter – importer profile, Authorization and blacklisting details).

DGFT’s website (‘http://dgft.gov.in’): DGFT website is an integrated electronic platform. It: •

Provides information relating to Foreign Trade Policy and procedures and all related documents.

•

Allows users’ web based electronic filing of applications for DGFT Schemes/ Authorizations to any of the 36 DGFT’s Regional Authorities across the country. The process of applications filing is secured with digital signature. It also allows users the facility of electronic funds transfer. The processing status of the requests / applications is also posted on the website of the concerned office.

•

Allows users to check and act upon information relating to their Shipping bills received from Customs and electronic Bank Realization Certificates (eBRCs) received from Banks.

EDI Initiatives Taken in DGFT: Directorate General of Foreign Trade (DGFT) is the first Indian government organization to start Web Based application processing (1997) using Secured Digital Certificates (2048 Byte Key encryption-2004). In the last one decade, many e-Governance initiatives have been implemented to achieve greater transparency and reduce transaction time and costs for the exporting community. Business Process Reengineering along with internal automation has reduced paper

Important EDI Initiatives Taken in DGFT: •

All authorizations are being issued online by DGFT; Message exchange

Annual Report 2013-14

with Customs has been implemented for Advance Authorization, EPCG and DFIA. Exporters can track; monitor their applications online at the DGFT website. A system has been established to receive RCMC from the Export Promotion Councils, Commodity Boards and FIEO in secured online format. DGFT offices will not ask for a copy of the RCMC from the Exporters. 22 EPCs etc. have uploaded the RCMC on DGFT website.

•

Electronic Fund Transfer Facility is being used by exporters for payment of application fee. The facility has been extended to additional banks. So far 21 banks have signed agreement with DGFT for electronic fund transfer.

•

An online Module has been developed with effect from 1st January 2011 for receipt of application, processing and issuance of Importer and Exporter Code (IEC). IEC is mandatory for the exporters and it is communicated online from DGFT to Customs. Integration with PAN database of IT department for validation is likely to be completed shortly.

e-BRC (Electronic Bank Realization Certificate) DGFT has established an e-BRC system to receive details of export proceeds from banks in digitally signed secured electronic format. DGFT dispensed with the issuance of physical copy of BRCs by banks for the purpose of DGFT use and made e-BRC mandatory w.e.f. 17.8.2012. Earlier Banks issued Bank realization Certificates (BRCs) to exporters in physical formats. The e-BRC system will significantly lower the transaction cost of

Annual Report 2013-14

The Directorate General of Foreign Trade’s electronic Bank Realization Certificate (e-BRC) project has won the first prize in the 2013 eASIA Award under Trade Facilitation category as announced by Asia Pacific Council for Trade Facilitation and Electronic Business (AFACT) in Ho Chi Minh City, Vietnam on November 29, 2013. The eASIA Award, held every two years, aims at promoting the achievement of AFACT member countries/economies in the development of trade facilitation, electronic business policies and activities, and initiatives for bridging digital divide in the Asia Pacific Region. eBRC has also won the award in 48th Annual Convention of Computer Society of India held on 14th December, 2013. Task Force on Transaction Costs High Transaction costs of exports remain an area of concern as it adversely affects competitiveness. To assess the procedural bottlenecks affecting India’s exports and

External Sector and India’s Foreign Trade Policy (FTP) 2009-14

•

exporters who will not have to visit or pay for BRC issuance to banks. Exporters can print BRC details on the DGFT site and submit it to any Department, which can, in turn verify the accuracy of the data from the DGFT website. This would mean all round manpower and effort savings for the Government agencies like Customs, Central Excise and at the State Government level, the Departments dealing with imposition and refund of Value Added Tax (VAT). So far, 13 State / Central Government Departments have signed MoU with DGFT for utilizing e-BRC data. These departments can source such information for the DGFT. The system may also supplement RBI’s efforts towards Foreign Exchange Realization Monitoring.

imports and to understand issues involved in depth, Government has so far constituted 2 Task Force on Transaction Costs.

First Task Force on Transaction Costs Status- Constituted in October, 2009 Report released on 8.2.2011 Report listed measures that resulted in reduction of approximately Rs. 2495 crores of transaction cost.

Chapter-4

Second Task Force on Transaction Costs Second Task Force on Transaction Costs has been constituted on April 18, 2013 under chair of DGFT and with members from concerned administrative ministries and Trade and Industry bodies. The task force members have visited ports and other points of contact of exporters with a view to find solutions to reduce transaction costs. The report of this task force is under submission. Terms of Reference of the Task Force: •

To identify reasons for high transaction cost in exports.

•

To identify areas, where Indian exporters face administrative impediments that lead to increase in transaction cost.

•

Compare procedural complexities in exports between India and its major competitors.

•

Suggest guidelines/ steps for removal of procedural complexities drawing from the global best practices.

•

Suggest guidelines/steps to move towards transparent and increasingly paperless processing through digital platform.

•

Suggestions have been invited from Central government departments, State Government/ UTs, Export Promotion Councils / Trade Bodies etc and academic institutions (IIMs, JNU, and DU etc).

The Task Force has been identifying issues by frequent deliberations and wide consultations, including visiting important points of trade transactions for gaining first hand understanding of the underlying issues. The Task Force will submit its report within a year of its constitution. Norm Committee Norm Committee performs the function of fixation of Standard Input Norm (SION), revision of existing SION and fixation of adhoc Norms for various products. This is an Inter Ministerial Committee, wherein representative of concerned administrative Ministries also represented. There are Seven Norms Committee dealing with various commodity groups and their progress during the period April, 2013 to March, 2014, is given below.

Annual Report 2013-14

Norms Committee (NC)

Engineering Electronics Pharmaâ&#x20AC;&#x2122; Organic Chemicals &Allied Textiles Food, Marine, Misc. Plastic & Rubber

Number of Fixation of Modification cases where new SION in existing adhoc-norms SION fixed 263 Nil Nil 323 Nil Nil 1359 5 7 528 Nil Nil 611 Nil 2 138 Nil Nil 414 Nil 1

Policy Relaxation Committee (PRC) In terms of Para 2.5 of FTP, DGFT may pass such orders or grant such relaxation or relief, as he may deem fit and proper, on grounds of genuine hardship and adverse impact on trade. DGFT may, in public interest, exempt any person or class or a category of person from any provision of FTP or any procedure and may, while granting such exemption, impose such conditions as he may deem fit. Such request may be considered only after consulting with Norms Committee/EPCG Committee/PRC, as the case may be. During the financial year 2013-14 (up to March, 2014), the Committee received as many as 1683 requests for relaxation in Policy/Procedures. Out of which 1155 cases were disposed of during 40 meetings of PRC conducted up to March .2014. Import Cell Import Cell considers the applications for items which are restricted for import. The applications for issuance of import authorization for Restricted Items (such

Annual Report 2013-14

Total

263 323 1371 528 613 138 415

as Live Animals, Scrap of rubber / plastic, Refrigerant Gases and Arms and Ammunition etc.), are considered by an Exim Facilitation Committee (EFC), consisting of representatives from various Administrative Ministries and Departments, headed by Addl. DGFT. Such cases are decided on the basis of written technical inputs / comments of concerned Administrative Ministry / Department. Apart from this permissions are also granted under Para 2.11 of FTP with the approval of DGFT for the items (such as Maize and Oats etc), import of which are allowed through State Trading Enterprises. Out of total 922 applications received in Import Cell during 2013-14 (up to March, 2014), as many as 522 applications (which constitute 56.61 % share) have been given import permission/ EXIM facilitation Committee meetings are also held on every month on third Thursday.

PRE-SHIPMENT (PSIA)

INSPECTION

AGENCY

As per Para 2.32 of HBP Vol.I, import of any form of metallic waste or scrap will

External Sector and Indiaâ&#x20AC;&#x2122;s Foreign Trade Policy (FTP) 2009-14

NC-I NC-II NC-III NC-IV NC-V NC-VI NC-VII

Commodity group

Chapter-4

be subject to the condition that it will not contain hazardous, toxic waste, radioactive contaminated waste / scrap containing radioactive material, any type of arms, ammunition, mines, shells, live or used cartridge or any other explosive material in any form either used or otherwise. Import of metallic waste and scrap is permitted only if the importer furnishes to the customs at the time of clearance of goods the Pre-shipment inspection certificate as per the format in Annexure 5B from any of the PSIAs recognised by DGFT, to the effect that the consignment was checked for radiation level and scrap does not contain radiation level in excess of natural background.

Para 2.32.2 B (Responsibility and Liability of PSIA and Importer) has been inserted in the HBP Vol.I (to appear after Para 2.32.2.A).

By Public Notice No. 104 dated 23/3/2012, the following amendments have been made inPara 2.32.2A of HBP Vol.1 (http://dgft.gov. in/Exim/2000/PN/PN11/pn10410.htm) -

48 PSIAs have been given recognition as on 31.03.2014, of which one agency has been de-listed and the period of recognition of one agency has ended.

(a) Application for recognition in respect of PSIAs have to be made in Performa prescribed in Appendix 5-A. (b) For applicants based in India application fee will be 7500/= and for applicants based abroad the application fee will be US $200. (c) The applications will be considered by an Inter - Ministerial Committee. (d) The PSIAs will be issued a recognition certificate valid for three years. However, DGFT has the right to suspend/cancel such a certificate at any time during the 3 year term. At the end of 3 years PSIA has to make a fresh application for further recognition. (e) PSIA shall issue Pre-Shipment Inspection Certificate (PSIC) in the format given in Appendix 5-B.

(a) In case of any mis-declaration in PSIC, PSIA would be liable to pay a penalty up to 10 Lakh (if the agency is based in India) or up to US $20,000/- (if the agency is based in foreign country), in addition to suspension/cancellation of recognition. (b) The importer would also be responsible for import of any material in contravention of the declaration as required under Para 2.32.2 of HBP Vol.I and would be liable to pay penalty up to 10 Lakh.

Export Cell Export Cell deals with licensing of the items which are Restricted in the ITC (HS) Classification for export (other than SCOMET items). The applications for issuance of export authorization for Restricted Items e.g. as Onion seeds, live animals, seaweeds, husk, fodder, chemicals under Montreal Protocol are considered by an Exim Facilitation Committee (EFC) chaired by Addl.DGFT with representatives of various Ministries and Departments. Such cases are decided on the basis of written inputs/comments and /or No Objection Certificate of concerned Ministry/ Department. Meeting of EFC is generally held once in a month. In addition, clarifications on Export Policy are also issued.

Annual Report 2013-14

Out of the total 82 applications received for export permission during 2013-14 (up to 31st October 2013), as many as 42 applications (which constitute approx. 51% share) have been given export permission and remaining 40 are pending with the concerned Ministry/ Deptt. For want of written technical comments.

SCOMET

All applications for export of SCOMET items as well as applications for on-site verification are considered on merits by an Inter-Ministerial Working Group (IMWG) in the DGFT under the Chairmanship of Additional Director General of Foreign Trade as per guidelines and criteria laid down in Para 2.49A of the Handbook of Procedure Vol. I. Members include, inter-alia,

Annual Report 2013-14

No export permission is required for supply of SCOMET items from DTA to SEZ. However, Export permission is required if the SCOMET items are to be physically exported outside the country from SEZ. There is an increasing trend in export of SCOMET items from India. The total value of export of SCOMET items in 2011-12 was US$ 50.61 million while during 2012-13, US$ 354.12 million and in 2013-14 it was US$108.35 million.

Scrips Issued under different Promotional Schemes of Foreign Trade Policy During the period April 2013– March 2014, a total of 1,69,626 Scrips having Duty Saved/ Awarded of Rs. 17,974 crores and FOB of Rs. 4,68,971 crores have been issued. During April 2012– March 2013, a total of 1,24,273 Scrips having Duty Saved/ Awarded of Rs. 13,244 crores and FOB of Rs. 3,09,867 crores have been issued. This represents an increase of 36.4 % in Scrips, 35.7% in Duty Saved/ Awarded and 51.3 % in FOB value for 201314 over 2012-13. However, there was an increase of 28.4 % in Scrips, 43.9% in Duty Saved/Awarded and 33.8% in FOB value for 2012-13 over 2011-12.

External Sector and India’s Foreign Trade Policy (FTP) 2009-14

“Special Chemicals, Organisms, Materials, Equipment and Technologies (SCOMET) items are dual-use items having potential for both civilian and WMD (Weapons of Mass Destruction) applications. Export of such items is either restricted, requiring an authorization for their export, or is prohibited. The export policy relating to SCOMET items is given in Paragraph 2.49A of Hand Book of Procedures Vol. –I, 2009-14 and the list of such items is given Appendix 3 to Schedule 2 of ITC (HS) Classification of Export and Import Items. There are eight categories of such items.

MEA, Cabinet Secretariat, DRDO, ISRO, DAE and Deptt. Of C&PC.

April - March 2011-12, 2012-13 & 2013-14. 2012 - 2013

2013 - 2014

Number of Scrips

Duty Saved/ Awarded (Rs. Crore)

FOB (Rs Crore)

Number of Scrips

Duty Saved/ Awarded (Rs. Crore)

FOB (Rs Crore)

Number of Scrips

Duty Saved/ Awarded (Rs. Crore)

FOB (Rs Crore)

Served from India scheme

1877

1243

1908

2000

2486

1431

Focus Market Scheme

14441

1064

35069

19800

1694

48213

27292

2724

75063

Focus Product Scheme

56214

3817

139942

78475

5323

203413

110252

8743

334563

Vishesh Krishi and Gram Udyog Yojana

22930

2486

56543

19471

2393

58161

23453

2748

59345

Status Holder Incentive Scrip

1311

590

4619

1834

6143

2328

TOTAL

96773

9200

231583

124273

13244

309867

169626

17974

468971

(Value Rs. Crore)

120000

Duty Saved/Awarded of Scrips under different Promotional Schemes Foreign Trade Policy

(Value Rs. Crore) 8743

Number of Scrips issued under different Promotional Schemes Foreign Trade Policy 110252

9000

100000 78475

8000

80000

7000

5000

22930 19471 23453

1694

590

1064

1311 4619 6143

2000

1431

2000

3000

1243

14441 19800 27292

20000

2724

4000

40000

2486 2393 2748

3817

60000

5323

56214

6000

1000

0 Served from India scheme

Focus Market Scheme

2011-12

Focus Product Scheme

2012-13

Vishesh Krishi and Gram Udyog Yojana

2013-14

Status Holder Incentive Scrip

1834 2328

2011 - 2012

1877 1908 2486

Chapter-4

Category

2011 - 2012 Number of CIF (Rs Authorizations Crore)

2012 - 2013 FOB (Rs Crore)

Number of CIF (Rs Authorizations Crore)

Advance Authorisation

19764

225877 284156

19034

Duty Free Import Authorisation (DFIA)

3502

17357

69454

2869

8922

Restricted Items

1208

12047

1091

Replenishment License (Gem & Jewellery) Total

24514

Annual Report 2013-14

255290 353669

23064

2013 - 2014 FOB (Rs Crore)

218357 268946

Number of CIF (Rs Authorizations Crore)

FOB (Rs Crore)

19671

176736 308885

13183

3138

27769

33791

41375

1218

33355

129

691

702

268783 282820

24092

237906 343378

External Sector and India’s Foreign Trade Policy (FTP) 2009-14

Authorizations issued April – March 2011-12, 2012-13 & 2013- 14

Number of Authorizations Issued under different Schemes of Foreign Trade Policy

CIF Value of Authorizations Issued under different Schemes of Foreign Trade Policy

18000 200000

16000

176736

250000

225877

(Rs. Crore)

218357

19671

19764

20000

19034

14000

12000

150000

10000

8000

100000

41375

DFIA

2011 - 12

Restricted Items

2012 - 13

Gem & Jewellery

2013 - 14

Authorizations Issued under Schemes of Foreign Trade Policy

During the period April 2013â&#x20AC;&#x201C; March 2014, a total of 67,549 Authorizations having Duty saved/Awarded of RS. 17,022 crores and FOB of Rs. 1,50,762 crores have been issued. During April 2012â&#x20AC;&#x201C; March 2013, a total of 46,843 Authorizations having duty saved/

129

0 Advance

DFIA

2011 - 12

different

12047

Advance

27769

17357 70

8922

1218

1208

2000

33355

3138

3502

50000

1091

Chapter-4

4000

2869

6000

Restricted Items

2012 - 13

Gem & Jewellery

2013 - 14

Awarded of Rs 16,377 crores and FOB of Rs. 1,45,259 crores have been issued. This represents an increase of 44.2% in Number, 3.9% in duty saved/Awarded and 3.7% in FOB value for 2013-14 over 2012-13. However, there was a decrease of 68.1% in Number, 39.4% in duty saved/Awarded and 60.5% in FOB value during 2012-13 over 2011-12.

Annual Report 2013-14

Authorizations issued April – March 2011-12, 2012-13 & 2013- 14 Category

2011 - 2012 Number of Authorizations

2012 - 2013

2013 - 2014

Duty FOB (Rs Number of Duty FOB (Rs Number of Duty FOB (Rs Saved/ Crore) Authorizations Saved/ Crore) Authorizations Saved/ Crore) Awarded Awarded Awarded (Rs Crore) (Rs Crore) (Rs Crore)

13629

7327

66773

14308

7659

65288

680

331

2556

Zero Duty EPCG Scheme & 0% Post Export

6937

8569

51428

4915

7256

43957

18364

13940

82594

*DEPB-Post Export

126503

11132

249684

27620

1462

36014

48505

2751

65612

Total

147069

27028

367884

46843

16377

145259

67549

17022

150762

*DEPB scheme was abolished with effect from 01-10-2011

Number of Authorizations Issued under different Schemes of Foreign Trade Policy

Duty Saved/Awarded of Authorizations under different Schemes of Foreign Trade Policy 13940

126503

140000

(Rs. Crore)

14000

11132

120000

12000 100000 8569

2751

27620

18364

4000

2000 331

4915

6937

680

14308

20000

13629

40000

6000

1462

48505

60000

7256

8000

7659

80000

7327

10000

EPCG 03% 2011-12

Zero Duty EPCG 2012-13

Annual Report 2013-14

DEPB 2013-14

EPCG 03%

Zero Duty EPCG

2011-12

2012-13

DEPB

2013-14

External Sector and India’s Foreign Trade Policy (FTP) 2009-14

EPCG Concessional Duty 03%

Export Promotion Measures

The Department implements the following export promotion measures at micro level to resolve the short term and long term problems faced by the trade and industry related to external sector :i.

Assistance to States for Developing Export Infrastructure and Allied Activities (ASIDE) Scheme

Chapter-5

ii. Infrastructure Support (Air, Sea and Road Transport) iii. Market Access Initiative (MAI) Scheme iv. Marketing Development (MDA) Scheme v.

Assistance

Export Credit Guarantee Corporation of India Limited (ECGC)

vi. National Export Insurance Account (NEIA) vii. India Brand Equity Foundation (IBEF) viii. E-TRADE Project ix. Major Initiatives undertaken by Export Promotion Councils (EPCs)

A. Gem & Jewellery Export Promotion Council (GJEPC) B. Electronics and Computer Software Export Promotion Council (ESC) C. Council for Leather Exports (CLE) D. Chemicals Export Promotion Council (CHEMEXIL) E. The Plastics Export Promotion Council (PLEXCONCIL)

F. Chemicals and Allied Products Export Promotion Council (CAPEXIL) G. Shellac and Forest Products Export Promotion Council (SHEFEXIL) H. Sports Goods Export Promotion Council (SGEPC) I. Engineering Export Promotion Council J. Services Export Promotion Council K. Project Exports Promotion Council of India (PEPC) L. The Cashew Export Promotion Council of India (CEPC) M. Indian Oilseeds and Produce Export Promotion Council (IOPEPC) N. Export Promotion Council for EOUs and SEZs O. Pharmaceutical Export Promotion Council (PHARMEXCIL) I. Assistance to States for Developing Export Infrastructure and Allied Activities (ASIDE) Scheme A sustained growth in exports which are regarded as an engine of economic growth is possible only when proper and adequate infrastructure is in place. In pursuance of the EXIM Policy announcement in March, 2000, the ASIDE scheme was launched by the Department of Commerce on 13.3.2002, for the purpose of creation of export infrastructure by

Annual Report 2013-14

optimizing the utilization of resources to achieve the objectives of export growth through a coordinated effort of the Central Government and the States.

The Government has spent Rs.2050 Cr and Rs 3048 Cr under ASIDE scheme during the 10th Five Year Plan (2002-2007) and the 11th Five Year Plan (2007-2012) respectively. During current financial year (2013-14), a budget of Rs. 745.10 crore (RE) has been allocated under ASIDE scheme. Details of funds released under ASIDE from 2002-03 to 2013-14 to various States, the North Eastern Region and the Central Sector is indicated below:-

Table 5.1 Outlay and sanctions/release under ASIDE

(Rs. Crore)

Year

Total Outlay

Sanction/ Sanction / Release Release to States in the Central (including N.E.R.) Sector

Total sanction release under ASIDE scheme

2002-03

325.46

241.00

84.46

325.46

2003-04

350.00

252.00

98.00

350.00

2004-05

424.88

313.84

111.04

424.88

2005-06

500.99

383.00

117.99

500.99

2006-07

450.00

358.92

90.25

449.17

2007-08

569.00

439.99

129.01

569.00

2008-09

570.00

437.84

131.40

569.24

2009-10

570.00

433.93

136.07

570.00

Annual Report 2013-14

Export Promotion Measures

Funds allocated under ASIDE scheme are disbursed directly to a Nodal Agency nominated by the State Government where it is kept in a separate financial accounthead of Nodal Agency. A webâ&#x20AC;&#x201C;enabled monitoring system (WEMS) on the website of the Department of Commerce is used for updating of project related information, submission of reports, utilization certificates. In this system we have entry module and reporting module. In the entry module Nodal Agency of respective State Govt. / UT administration has been authorised to enter details of the projects approved by concerned SLEPC and also physical and financial progress pertaining to each project on quarterly basis. In the report module the administrative division in the Ministry enters

the details of funds released from time to time and then based on two entries we get a report regarding utilization of funds and also un-utilized balance left with the Nodal Agency. In the entry module there is also provision for entering the period for which UCs has been submitted to DOC. While considering the further release it is ensured that all the UCs which were due have been received and also the Nodal Agency do not have substantial un-utilized balance from the previous releases.

2010-11

662.98

530.00

132.98

662.98

2011-12

707.16

560.32

116.62

676.94

2012-13

655.50

524.73

130.77

655.50

2013-14*

745.10 (RE)

590.67

154.43

745.10

*As on 31.03.2014

Table- 5.2 Year-wise release of funds to the States / UTs under state Component of ASIDE Scheme

(Rs. Crore)

Chapter-5

S. No. State

02-03 03-04 04-05 05-06 06-07

07-08 08-09 09-10 10-11 11-12 12-13 13.14*

12.00 13.00 13.85 15.45 17.00

21.20 19.20 20.41 31.21 40.82 36.44 39.09

Andhra Pradesh

A & N Islands

2.00

1.00

0.00

1.20 57.00

0.00

Bihar

3.00

0.00

0.00 3.915 14.51

Chandigarh

1.00

0.00

3.20

1.75

2.50

0.00

Chhattisgarh

4.00

5.00

5.50

4.35

0.00

5.22

6.66

5.84

Dadra & Nagar Haveli

1.50

0.00

Daman & Diu

1.50

0.00

2.42

0.00

Delhi

1.00

0.00

2.65

1.45

2.90

0.00

Goa

6.00

3.73

6.09

6.70

5.70

5.41

7.13

6.12

0.00

Gujarat

14.00 15.00 35.78 43.38 47.70 59.725 58.35 59.57 59.57 55.28 64.00 64.00

Haryana

6.00

8.49 14.05 7.725

Himachal Pradesh

7.00

7.50

5.00

5.53

6.00

5.70

5.10

5.27

Jammu & Kashmir

6.00

5.00

5.25

5.80

5.51

0.00

Jharkhand

4.00

0.00

2.75

5.50

5.22

0.00

0.00 3.145

6.29

Karnataka

18.00 19.00 24.14 33.99 37.40

42.62 41.62 39.54 70.34 52.39 45.77 45.77

Kerala

11.00 12.00

11.75

9.75

9.26

Lakshadweep

0.00

0.00 1.0173

2.00

9.30 10.69 11.75

9.26 18.52 16.62 20.94

0.00

Madhya Pradesh

20.00 11.00 14.35 14.35

7.90

15.80 14.80 14.06 14.06 22.16 19.40 19.40

Maharashtra

16.00 34.00 57.09 65.52 72.10

82.00 80.00 81.22 81.22 68.00 64.00 64.00

Odisha

4.50 10.00

6.05

6.93

7.65

8.92

7.92

9.14 14.14 17.90 18.00 18.00

Puducherry

3.00

0.00

Punjab

9.68 12.17

6.0

6.70 13.40 12.73 12.73 16.26 14.28 14.28

Rajasthan

12.00 13.00 13.20 13.20 7.265

14.53 13.53 12.85 29.39 24.42 21.58 21.58

Tamil Nadu

28.00 30.00 39.19 39.19 43.12

49.88 47.88 49.10 49.10 67.27 59.77 60.66

Uttar Pradesh

20.00 21.00 12.59 21.00 11.55

23.10 22.10 20.99 20.99 34.13 18.95 46.24

Uttaranchal

West Bengal

10.00 11.00 14.91 20.09 22.10

Total

226.50 239.00 282.35 343.00 323.21 402.275 396.60 392.69 487.38 498.82 458.27 504.78

1.50

9.00 10.00

4.00

2.00

0.00

15.45 15.45 14.68 34.68 20.85 21.10 21.26

5.00

5.27

0.00

5.80

0.00

5.51

0.00

6.02

0.00

2.54

0.00

22.10 20.10 19.09 29.89 35.91 31.53 31.53

Annual Report 2013-14

North Eastern Region 1

Arunachal Pradesh

1.00

1.25

Assam

4.00

5.00 11.49 12.57 6.915

Manipur

2.00

0.00

2.00

2.06

2.27

4.54

4.56

Mizoram

1.00

0.00

2.00

3.24

3.56

3.57

3.56

3.50

4.30

Meghalya

2.00

2.50

5.72

8.34

9.17

2.99

9.17

9.44 11.61 11.61

Nagaland

1.00

0.50

2.00

2.20

3.63

Sikkim

0.50

0.00

2.00

2.20

2.69

2.70

Tripura

3.00

3.75

8.28

7.28

8.01

8.01 10.04 10.25 10.25

Total Grand Total

0.00

2.51

1.38

14.50 13.00 31.49 40.00 35.705

2.76

0.00

1.38

0.00

13.83 13.83 13.83 13.83 27.66 29.41 48.84

37.82 41.24 41.24 42.62 61.50 66.46 85.89

241.00 252.00 313.84 383.00 358.915 439.99 433.34 433.93 530.00 560.32 524.73 590.67

*As on 31.03.2014

Incentive Scheme

Monitoring of the ASIDE scheme The progress of the Scheme in States is closely monitored by the states cell. In order

Annual Report 2013-14

Changes brought in ASIDE Guidelines: The Department of Commerce has carried out four major amendments in ASIDE Guidelines, in consultation with the Ministry of Finance, Department of Expenditure to increase effectiveness in ASIDE Scheme. These amendments are as under: •

“The cost of the land will be borne by the concerned State Government/ UT other concerned organization and it would not be included in the project cost.”

Export Promotion Measures

As per guidelines to incentivize better performance amongst States / UTs within existing framework of ASIDE Scheme, 10% of ASIDE annual allocation is set aside for the incentive scheme wherein funds out of State Component of ASIDE is earmarked for States other than NER and the 10% out of Central Component for NER States including Sikkim. In 2010-11 Karnataka, Rajasthan and Haryana under ONER (other than NER) Category and Manipur in NER Category have been incentivized for their better performance. In 2011-12 Karnataka, Rajasthan, Maharashtra and Haryana under ONER (other than NER) Category and Manipur, Nagaland, Sikkim and Tripura in NER Category are found eligible for incentive. However, no incentive could be provided to the States/UTs in the years 2012-13 and 2013-14 due to availability of insufficient funds.

to evaluate progress in the implementation of projects, its impact on exports etc., the projects sanctioned under ASIDE/CIB are being visited by field formations of Department of Commerce who submit consolidated report in the prescribed format to Department of Commerce, State Government and the nodal agency of the State for appropriate action. Senior Officers of the Department of Commerce have also been made Nodal Officers and allocated certain States/UTs for on the spot inspection of the projects being taken up by the States/UTs from ASIDE funds.

•

Chapter-5

•

“Ownership of asset (s) created by a non-government agency with financial assistance under ASIDE Scheme will vest with such non-government agency and it will exercise exclusive rights to its usage. The agency will be fully responsible for upkeep and maintenance of the asset(s) so created.” “The contribution to a non-government agency shall normally be restricted to 50% of the total project cost or Rs.7.5 crores, whichever is less”

regular updation of website pertaining to ASIDE by State / UT etc are also raised during the visits of Additional Secretary, Commerce Secretary or Honorable Minister to the States. •

An annual review of performance of all States / UTs under the chairmanship of Additional Secretary (ASIDE)/ Joint Secretary (ASIDE) is done.

•

Joint Director General of Foreign Trade (Jt. DGFT) / Development Commissioner (DC) of Special Economic Zones (SEZ) have been made members of SLEPC and sensitized to participate in SLEPC Meetings regularly and report to Department of Commerce any discrepancies, if they think so. Department of Commerce acts on the reports of these officers and advises the State accordingly.

10% of the actual outlay under State Component may be used as Flexi Fund to meet local needs within overall objective of scheme. The States may also use this fund to pilot innovations, improve efficiency of the scheme and for mitigating/ restoration of activities in case of natural calamities.”

Additional steps for increasing effectiveness of ASIDE scheme

Success stories of ASIDE •

Maniram Dewan Trade Centre, Guwahati, Assam: This was constructed with assistance of Rs.28.38 Cr under the ASIDE Scheme to facilitate organization of trade fairs and exhibitions and invite wider participation (national and international). It is serving as a platform for entrepreneurs of the region to display their products in National and International Trade Fairs and has attracted visitors/delegates from various South East Asian countries.

•

Additional Infrastructural Facilities at Calicut Air Cargo Complex: This project has been completed by the Kerala State Industrial Enterprises Ltd. in 2010 at the total cost of Rs.3.10 Cr.,

The Department of Commerce has reviewed its efforts in creation of exports infrastructure and taken various measures to increase effectiveness in the ASIDE Scheme. Such steps are as follow:•

•

Nodal Officers for each State / UT at the level of Joint Secretary (JS) of Department of Commerce / DGFT have been nominated to act as nodal officer in DoC for such State / UT and for participating in SLEPC Meeting of concerned State / UT. Issues relating to completion of projects on time, submission of Utilisation Certificate (UC), issue of large unspent balances available with States and

Annual Report 2013-14

with financial assistance of Rs.1.55 Cr. under the ASIDE Scheme of Department of Commerce. The project involved construction of buildings, electrification & air-conditioning, fire detection, computerization and communication systems. Impact of the project can be seen from the fact that when it was partially commissioned during 2008-09, the quantity of exports increased by 50% and presently export volume is 225 % more than what it was in 2007- 08.

get the maximum price in export of flowers. India Expo Centre & Mart, Greater Noida: The Export Promotion Council Handicrafts, New Delhi started the construction of the India Expo Centre & Mart, Greater Noida with financial assistance of Rs.12.00 Cr. under ASIDE scheme during 2002-03. The India Expo Centre & Mart has become the missing link connecting the artisans and exporters at one end and exporters and overseas buyer at other end. Land Custom Station and Trade Centre at Moreh on the Myanmar, Manipur Trade Route. Substantial amount of funding has been done from the State Component of ASIDE on the development of facilities like construction of brick wall/ retaining wall, drainage system, land development, public convenience, approach road, fencing, repairing at trade centre etc. at Moreh in the years 2005-06 and 2006-07.

•

Strengthening of Institute of Auto parts & Hand Tools Technology, Ludhiana: The DoC has helped the Institute in its strengthening by installation of facilities for Reverse Engineering, Non-Destructive Testing and Advanced Heat Treatment Processing with 100% finance of project cost of Rs. 5.18 Cr. under ASIDE Scheme. As a result, the exports in this sector have risen from Rs. 6000 cr in 2005-06 to Rs. 9500 cr in 2008-09 and share of Punjab has been 30-35%.

•

International Flower Auction Yard, Bangalore (IFAB): Karnataka State is leader in floriculture with a cultivation area over 18,000 hectares. The State has highest area under modern cut flowers and it accounts for 75% share in India’s total flower production. IFAB Limited, a joint venture between KAIC & flower growers has been helped by the Department of Commerce with financial assistance of Rs.3.00 Cr. to complete the project of replacement of traditional auctioning system and creation of a hygienic platform for both sellers and buyers so that the farmers

Progress of Studies on ASIDE projects

Annual Report 2013-14

Study on Export Potential of Southern States by IIM Kozhikode: Study by IIM Kozhikode on export potential of four southern States was commissioned during 2012-13 at a cost of Rs.15.00 lakhs. has submitted its strategy paper on the export potential of 4 southern Stated. The Strategy paper has been circulated among all the concerned States. Evaluation of Export Potential in North East by IIM Shillong: Another study was assigned to IIM Kozhikode during 2012-13 at a cost of Rs.12.00 to evaluate export potential of four southern States. The institute has

Export Promotion Measures

•

submitted its draft report to the Department in November, 2013.

Chapter-5

Study by IIFT: A new study has been launched by the Department during the current financial year for development of suitable success indicators/criteria for

monitoring for reasonable correlation between implementation of projects under ASIDE scheme (central component) and increase in exports from such projects. This study has been assigned to IIFT, New Delhi at a cost of Rs.18/- lakhs.

India Expo Centre & Mart, Greater Noida

Advance Jewellery Design Technology Center, Bangalore (JSS)

Annual Report 2013-14

Export Promotion Measures

Wood Craft Designing & Common Facilities Centre, Saharanpur

Common Facility Centre at Saharanpur

Annual Report 2013-14

Chapter-5

Rubber Park, Tripura

Annual Report 2013-14

II.

INFRASTRUCTURE

Department of Commerce endeavors to provide transport/logistic support to Indiaâ&#x20AC;&#x2122;s foreign trade through coordination and resolution of problems experienced by the trading community in carriage of goods by courier, sea, air, rail and road with concerned Ministries & Departments. It seeks to encourage greater containerization, computerization of cargo clearance and electronic data interchange, warehousing, setting up of Inland Container Depots (ICDs), Container Freight Stations (CFSs) etc. In order to resolve the infrastructural constraints being faced by exporters / importers on infrastructural front, Department of Commerce has been taking up the matter with Ministry of Shipping, Ministry of Road Transport and Highways,

Annual Report 2013-14

Department of Revenue, Ministry of Civil Aviation, Ministry of Railways etc.

Steps taken for trade infrastructure development Inter Ministerial Committee (IMC): Single Window Clearance for the proposals for setting up of Inland Container Depots / Container Freight Stations (ICDs/CFSs) is given through an Inter-Ministerial Committee (IMC) functioning since 1992 under the Chairmanship of Additional Secretary (Infrastructure Division), Department of Commerce. So far 284 Letters of Intent have been issued out of which 190 are functional and 94 are under implementation. The State wise summary of Functional and Under Implementation ICDs/CFSs are as follows :

Export Promotion Measures

Printing Center for Export Promotion of Textiles, Dharwad , Karnataka

Table-5.3 The State wise summary of Functional and Under Implementation ICDs/CFSs

Chapter-5

State

Functional

Under implementation

Total

Andhra Pradesh

Bihar

Chhattisgarh

Goa

Gujarat

Haryana

Himachal Pradesh

Jharkhand

Jammu & Kashmir

Karnataka

Kerala

Madhya Pradesh

Orissa

Pondicherry

Punjab

Rajasthan

Tamil Nadu

Uttar Pradesh

Uttarakhand

West Bengal

190

284

Maharashtra

Total

In the year 2013-14 (i.e. Upto 31-03-2014), five IMC meeting have been held, in which 11 proposals for issue of Letter of Intent (LOI) and 26 cases of extension for LOI have been approved. ‘In–principle’ approval for setting up an ICD was granted to one company and 03 cases for extension of ‘In–principle approval’ were approved.

Standing Committee on Promotion of Exports by Sea (SCOPE-Shipping) and Standing Committee on Promotion of Exports by Air (SCOPE-Air):Two high level committees, viz. the Standing Committee on Promotion of Exports by Sea (SCOPE-Shipping) and the Standing Committee on promotion of Exports by Air (SCOPE-Air)

Annual Report 2013-14

Several issues relating to bottlenecks in trade by sea, air, rail and road are discussed in the above meetings and necessary directions are given by the Chairman of the Committee to the concerned ministries/ departments/ agencies to sort out the prevailing problems. Resolution of problems faced by trade: Besides above measures, other important residual issues which are raised by the associations / organizations of exporters / importers about reported difficulties being faced by shippers/ exporters while importing / exporting consignments resulting in enhanced transaction cost on account of arbitrary and exorbitant charges by shipping lines, consolidators, freight forwarders and other service providers such as collusive price fixing by the service providers at ports / airports and cartelization of the shipping liners resulting in sharp cost escalation, congestion at various ports, lack of suitable infrastructure, poor planning and congestion at ports have been taken up at appropriate level by the Department of Commerce from time to time. Annual Report 2013-14

III. M arket Access Scheme

Initiative

(MAI)

Market Access Initiative (MAI) Scheme is a Plan scheme formulated to act as a catalyst to promote India's exports on a sustained basis, based upon focus product and focus market concept. Under the scheme, assistance is extended to the Departments of Central Government and organizations of Central/ State Governments, Export Promotion Councils, Registered Trade Promotion organizations, Commodity Boards, recognized Apex Trade Bodies and Recognized Industrial Clusters and individual Exporters (only for product registration and testing charges for engineering/Pharmaceuticals products abroad). The scheme was revised after a thorough review with extensive consultation with all the stake holders in the year 2006 and revised Scheme was launched with effect from January, 2007. During the year 2013-14, 170 projects/studies including 13 “India Shows” were approved for receiving assistance under the scheme. Out of 13 “India Shows”, 9 were finalized. Year-wise status of MAI allocation/release is as under:Table-5.4 Year wise Status of MAI Allocation/Releases (Rs Crore) Year

Outlay

Expenditure

2006-07

40.00

39.99

2007-08

45.00

44.99

2008-09

50.00

49.99

2009-10

64.00

64.99

2010-11

110.00

2011-12

150.00

2012-13

125.00

2013-14

179.99

Export Promotion Measures

are functioning under the Chairmanship of the Additional Secretary (Infrastructure), Department of Commerce. The objective of these committees is to address constraints in the smooth movement of international cargo and resolve problems of exporters concerning Customs, Containerization, Air, Shipping & Railways related issues. The meetings of these two Committees are normally held every year. Since the year 2004, seven meetings of these committees have been held. In 2013-14, these meetings were held on 20th December, 2013. The minutes of the meetings were forwarded to the stake holders for furnishing Action Taken Reports on the issues concerning them

INDIA SHOW Display and promotion of India's capabilities as provider of world class goods and services. Project India as an attractive investment destination. Create a strong Brand Image for India. Focus on entire region with mega event to create a major impact. Provide high quality and authentic Indian cuisines. Shows cultural programme in consultation with ICCR.

• • • • • •

Chapter-5

Table-5.5 Approved “India Show” (2013-14) S. No. 1 2 3 4 5 6 7 8 9

IV.

Region Panama IIJS Show, Mumbai Tanzania India IT Show, Mumbai Malaysia Textiles(TEXTRENDS), New Delhi Engineering, Mumbai Lahore Kazakhstan

arketing Development Assistance M (MDA) Scheme

To facilitate various measures being under taken to stimulate and diversify the country's export trade, Marketing Development Assistance (MDA) Scheme is under operation through the Department of Commerce. The Scheme supports the following activities: •

Assist exporters for their participation in approved EPC/Trade Promotion Organization led export promotion events abroad

•

Assist Export Promotion Council (EPCs) to undertake export promotion activities for their product(s) and commodities.

Council CII G&JEPC CII ESC EPC CII AEPC EEPC FICCI CII

Date 17-20 April 2013 8-12 August 2013 26-28 September 2013 26-27 November 2013 26-28 November 2013 20-22 January 2014 22-24 January 2014 28th February-2nd March 2014 27-30 March 2014

•

Assist approved organization/trade bodies in undertaking exclusive nonrecurring innovative activities connected with export promotion efforts for their members

•

Assist Focus export promotion programmes in specific regions abroad like FOCUS (LAC), Focus (AFRICA), Focus (CIS) and Focus (ASEAN+2) Programmes.

•

Residual essential activities connected with marketing promotion efforts abroad.

MDA guidelines have been revised from 01.06.2013. Revised guidelines have substantially enhanced the financial ceiling

Annual Report 2013-14

Year

Outlay

Expenditure

2006-07

52.25

2007-08

52.25

2008-09

52.25

2009-10

53.00

2010-11

56.00

2011-12

50.00

2012-13

39.49

2013-14

49.99

E xport Credit Guarantee Corporation of India Ltd. (ECGC)

The Export Credit Guarantee Corporation of India Ltd. (ECGC), Mumbai was set up in 1957 under the Companies Act, 1956. It has the primary objective of supporting the countryâ&#x20AC;&#x2122;s exports by extending credit insurance facilities to Indian exporters and commercial banks. The paid up capital at the end of 2012-13 is Rs 1000 crores. The Corporation has registered itself with IRDA on 27th September, 2002 under non-life category.

Annual Report 2013-14

The Export Credit Insurance Policies issued by the Corporation to Exporters provide insurance cover against commercial and political risks for shipments made on shortterm / long-term credit. The total value of business covered under short term policies schemes amounted Rs.1,26,100 crores as against Rs 1,19,621 crores in 2011-12 recording a growth of 5.41%. The Corporation also provides Export Credit Insurance for Banks (ECIB). Twenty Six Government owned banks and 15 private banks have availed ECIB covers on Whole Turnover (WT) basis protecting their Export Credit portfolio. The Corporation has covered around 65% of export credit disbursements made by the banks during FY 2012-13. The outstanding covered as at the end of 201213 has increased to Rs 1,33,250 crores as compared to Rs1,20,119 crores as at the end of 2011-12 reflecting 11% growth. The total claims paid by the Corporation during the year amounted to Rs 548.50 crores compared to Rs 713.03 crores in the previous year. During the FY a sum of Rs 120.53 crores was recovered as against Rs.168.64 crores in the previous year. The amount of Rs.120.53 crores recovered during the year consists of ` 7.40 crores under policies issued to Exporters, Rs. 104.71 crores under Export Credit Insurance for Banks and Rs. 8.42 crores under the medium and long term covers. The total premium collected from all the schemes of the Corporation during the year amounted to Rs 1,157.25 crores as compared to 1004.83 crores in 2011-12, registering a

Export Promotion Measures

for participation of Exporters in trade fairs and exhibitions. Now exporting companies having f.o.b. value of exports upto Rs 30 crore are eligible for MDA assistance. However, this limit is not applicable for exporters participating in LAC Region. The revised guidelines have also substantially enhanced the financial assistance ceiling for participation in Trade Fairs & Exhibitions from Rs 1,80,000/- to Rs. 2,50,000/- for focus Latin American countries and from Rs.1,50,000/- to Rs.2,00,000/- for focus African countries, focus CIS countries and focus ASEAN countries. Table-5.6 Year wise status of MDA Releases/Allocation (Rs Crore)

Chapter-5

growth of 15.16%. The Short Term Export Credit Insurance to Banks contributed 64.96% of the total premium income, followed by Short Term Policy sector, which contributed 31.17%. The income from medium and long term sector accounted for 3.87% of the total premium income.

New Initiatives:

The total gross income (on accrual basis) of the Corporation amounted to Rs 1,206.60 crores (Previous year Rs 1,126.16 crores) of which net earned premium income was Rs. 796.04 crores (Previous year Rs. 766.25 crores). Of the other income, investment income accounted for Rs. 397.98 crores registering a growth of 12.55% over Rs 353.59 crores earned for the previous year. The total expenditure was Rs 951.05 crores comprising Rs 812.80 crores by way of net claims paid and provisions for liability on pending claims and Rs 138.25 crores of administrative expenses (including write-offs and depreciation). The year under review ended with a profit before tax (PBT) of Rs 350.14 crores (PBT for 2011-12 3 Rs 27.72 crores).

Features of Multi Buyer Exposure Policy and ECIB Surety Cover have been modified with the concurrence of IRDA.

The Corporation has declared and paid a dividend of Rs 60.00 crores for the year 201213 as compared to Rs 54.00 crores paid for the previous year. Given the global economic crisis, EURO Zone debt crisis and recession world over which affected the export trade and resulted in increased incidence of defaults and claims, the Corporation continued to promote exports by continued underwriting to difficult markets and substantial claim payments to banks and exporters.

During the FY GoI subscribed Rs 100 crores towards paid up capital of the Corporation increasing it to Rs 1000 crores. The Authorized Capital of the Corporation has been enhanced from Rs 1000 crores to Rs 5000 crores since July 2013.

Three new branches have been opened; one composite branch in Faridabad and two specialized branches in Hyderabad and Tirupur in place of one composite branch each, taking the branch network of the Corporation to 55. A customer care (grievance redressal) policy has been formulated. An Apex Customer Grievance Committee consisting of senior executives is the in-house appellate authority for any customer complaint in the Corporation. Further a three member Independent Review Committee has also been constituted consisting of external experts in the field of Judiciary, Banking and Credit Insurance. The Corporation has also provided linkage to the Centralised Integrated Grievance Management System (IGMS) of IRDA, to which customers can directly log on. A new comprehensive Buyer Score Card system has been developed for buyer ratings and determination of Overall Limits. During the FY CRISIL Risk and Infrastructure Solutions Limited has undertaken an independent evaluation of business plans of the Corporation and recommended enhancement of capital in a phased manner.

Annual Report 2013-14

VI. N ational Export Insurance Account (NEIA) A separate Fund viz, the National Exports Insurance Account (NEIA) was set up in 2006. A sum of Rs 916 crores has been funded by the Government of India (GoI) till FY 201213. The total fund of NEIA as on 31.03.2013 is Rs 1,433 crores constituting corpus, premium, fees and interest accrued.

The objectives of NEIA were expanded by the GoI in December, 2008 in view of the Global Financial Crisis, so as to provide additional 5%/10% risk cover for exports/export credits covered by ECGC during the period 01.01.2009 to 30.06.2010 to stimulate export growth in the face of global financial crisis. The Trust paid claims to 279 Indian exporters and banks to the tune of Rs12.05 crores till 31.03.2013. The scheme came to an end on 31.03.2013. The Trust apart from issuing direct covers to exporters/banks also provides cover to ECGC on select project export covers (medium & long term). Two covers were issued by the Trust directly to exporters during the year. Five covers issued by ECGC (for two projects) during 2012-13 were supported with NEIA guarantee of value Rs1,335.89 crores.

Annual Report 2013-14

During the FY under report CRISIL Risk and Infrastructure Solutions Limited has done an independent evaluation of business performance of the NEIA scheme.

VII. India Brand Equity Foundation (IBEF) India Brand Equity Foundation (IBEF) is a Trust established by the Department of Commerce, Ministry of Commerce and Industry, Government of India. IBEFRs.s primary objective is to promote and create international awareness of the Made in India label in markets overseas and to facilitate the dissemination of knowledge of Indian products and services. Towards this objective, IBEF works closely with stakeholders across government and industry. The IBEF Knowledge Centre has emerged as a credible source of information on Indian business and economy, powered by its website www.ibef.org. IBEF business kits comprising rich business information reports across states and sectors of India, exports from India, the India Now, Business and Economy magazine and The Best of India series continue to be valuable resource tools, which are extensively leveraged by Indian missions as well as business audiences and academics within the country and abroad. IBEF is making an impact in thought leadership by providing keen business insights into trends shaping the Indian economy. The India Show, an initiative of the Department of Commerce, and the

Export Promotion Measures

The objectives of NEIA is to promote export from India, which may not take place but for the support of a credit risk insurance cover which the ECGC is not in a position to provide because of its own underwriting capacity constraints. The NEIA is maintained and operated by NEIA Trust, a Public Trust set up jointly by the Department of Commerce and ECGC.

NEIA has issued 29 Covers supporting 14 projects of value exceeding Rs 8,889 crores as on 31.03.2013. The Trust earned an income of Rs 139 crores as interest, premium/guarantee fees during the FY.

nation brand campaign led by IBEF in recent years coinciding with the Annual Meeting of the World Economic Forum in Davos have effectively enabled IBEF to showcase Brand India amongst international audiences.

Chapter-5

During 2013-14, IBEF successfully consolidated the global Brand India Pharma campaign in its second phase, creating resonance in international media with its preferred positioning as the Pharmacy of the World. Under the aegis of the Department of Commerce, IBEF has also been engaged in conceptualising a brand promotion strategy for select engineering segments and specific commodities like tea, coffee and spices.

VIII. F ederation of Indian Organisations (FIEO)

Export

The Federation of Indian Export Organisations (FIEO), set up in 1965 as an Apex Body of Export Promotion Organisations and institutions in the country with its Headquarters in Delhi and Regional Offices in Delhi, Mumbai, Chennai and Kolkata, and Chapters in Jaipur, Kanpur, Ludhiana, Ahmadabad, Indore, Hyderabad, Kochi, Bangalore, Coimbatore, Bhubaneswar, Ranchi and Guwahati. FIEO has been serving as a platform of interaction between exporters and policy makers, and has been instrumental in promoting the efforts of Indian exporting community. It is an ISO 9001-2008 certified Organization. The main objective of FIEO is to render an integrated package of services to various organizations connected with export promotion. It functions as a primary servicing

agency to provide integrated assistance to its over 16,000 members comprising professional exporting firms holding recognition status granted by the Government, consultancy firms and service providers. Organisations like the Export Promotion Councils, Commodity Boards, Export Development Authorities, Chambers of Commerce, Export Houses, Star Export Houses, Trading Houses, Star Trading Houses, Premier Trading Houses, Consultancy Organisations & Trade Associations etc. constitute the membership of FIEO. In terms of the Foreign Trade Policy, FIEO has been designated as Registering Authority for status holder exporting firms, other exporters dealing in multi-products. The Federation organizes Seminars, Open House Meets, Interactive Sessions, Awareness Programmes, Training Programmes and arranges participation in various exhibitions in India and abroad. Besides, FIEO provides e-platform to buyer/sellers through huge network of members and non-members, and also organizes India Shows, Trade Fairs and Exhibitions across the globe, particularly in untapped countries. FIEO has signed over 75 MOUs with leading chambers across the globe to provide commercial information and marketing support to its members. FIEO undertakes studies and research work in the field of exports and help States to identify potential products of exports and devise strategy for facilitating exports of such products. FIEO has a monthly bulletin FIEO News and has started a weekly e-bulletin INTRADE. which keeps exporters posted with global developments affecting International Trade as well as countryâ&#x20AC;&#x2122;s foreign trade related information.

Annual Report 2013-14

IX. eTRADE Project The project eTRADE aims to facilitate Export and Import led clearances in online environment, integrating international standards and best practices. This is a community project covering trade regulatory and facilitating agencies like Customs, Directorate General of Foreign Trade (DGFT), Sea Ports, Airports, ICDs/CFSs, Exporters, Importers, Agents and Banks. The project facilitates electronic delivery of services like document filing/clearances; e-Payments integration etc.

•

The electronic bank realization certificate (eBRC) system has been operationalised by the DGFT. eBRC standardizes the process of reporting and collection of BRC data. It also facilitates monitoring and facilitation of exports related foreign exchange transactions. Till date around 9 million eBRCs of value approx. 450 billion USD have been uploaded on to the DGFT server by banks. The eBRC system enhances the productivity of all stakeholders mainly exporters, banks and DGFT and it has saved a large number of trees, time and stress. The eBRC project has won eASIA Award in Trade Facilitation category given by Asia Pacific Council for Trade Facilitation (AFACT) at the ceremony held at Ho Chi Minh City, Vietnam. The message exchange between Customs and DGFT on chapter 3 schemes has been started for shipping bill exchange. The Centralized Port Community System (PCS) a single window interface has

Annual Report 2013-14

•

The Central Server system of Customs has been rolled out at 120 locations. The message exchange for critical messages is operational with community partners like Airports, seaports through Ports community system (PCS), Container Corporation of India (CONCOR) and other major ICDs/CFSs.

•

The Risk Management System(RMS 3.1) for imports under central server environment is already operational and RMS for exports has also been launched. RMS for export is being rolled out at various locations in phased manner.

•

ePayments have been integrated by DGFT, Customs, Seaports through PCS and other community partners.

ajor Initiatives undertaken by M Export Promotion Counclis Gem & Jewellery Export Promotion Council (GJEPC)

The Gem & Jewellery Export Promotion Council, the apex trade body of the Indian gems and jewellery industry has completed more than 45 years of its existence. It has approximately 5300 members. The gem & jewellery manufacturing sector is India’s leading foreign exchange earning sector. Exports of gem and jewellery from India during the fiscal year 2013-14 registered a performance of US$ 41100.13 million. This sector contributed about 13.15% of

Export Promotion Measures

The key achievements during the year 201314 are as given below:

already been operationalised at 19 seaports. The agreement has been made with Gujarat Maritime Board (GMB) and integration of four seaports of Gujarat with PCS has been started. Other seaports are also pursued for integration.

the country’s total merchandise exports estimated at US$ 312610.30 million. It consists of a large number of SME units, employing skilled and semi skilled labour, almost entirely in the unorganized sector.

Chapter-5

Participation in the events/exhibitions

•

Hong Kong Show from 8th – 9th March 2014 at Hong Kong

•

Global Gem & Jewellery Fair from 20th – 22nd March 2014 at Dubai.

Other activities •

First India-China Gemstones Buyer-Seller Meet was organised from 7th -11th April, 2013 in Jaipur

•

Basel World 2013 from 25 April-2 May 2013 at Basel, Switzerland

•

Vicenzaoro Spring 2013 from 18-22 May 2013 at Vicenza, Italy

•

First Indo-Australia Jewellery Conclave in Sydney on 21-22 May, 2013

•

JCK Show Las Vegas 2013 from 31st May to 3rd June 2013 at Las Vegas, USA

•

Hong Kong Jewellery & Gem Fair 2013 from 20-23 June 2013 at Wan Chai, Hong Kong

India International Jewellery Week (IIJW) 2013 - August 4-8, 2013 at Grand Hyatt, Mumbai.

•

First International Gold Jewellery Buyer Seller Meet from 2nd to 4th October, 2013 at Hotel Hyatt Regency, Chennai.

•

40th Indian Gem and Jewellery Awards on October 5, 2013 at NCPA, Mumbai

•

1st India-Russia Gemstone & Jewellery Buyer-Seller Meet 2013 from 8th – 12th December 2013 at Jaipur

•

India Gem & Jewellery Machinery Expo 2013 (IGJME) 13th – 15th December, 2013 at Surat.

•

IIJS Signature 2014 21st – 24th February 2014 at Mumbai.

E lectronics and Computer Software Export Promotion Council (ESC)

• •

JA Show, New York 2013 from 28-30 July 2013 at New York, USA India International Jewellery Show (IIJS2013) from 8th to 12th August, 2013 at Bombay Exhibition and Convention Centre, Mumbai

•

52nd Bangkok Gems & Jewellery Show 2013 from 6-10 September 2013 at Bangkok, Thailand

•

Vicenzaoro Fall 2013 from September 2013 at Vicenza, Italy

•

Hong Kong Jewellery & Gem Fair 2013 AWE from 11 to 15 September 2013 CEC 13 to 17 Sept 2013 at Hong Kong

•

Jewellery Arabia 2013 from 19-23 November 2013 at Manama, Bahrain

•

Vicenza Auroa from 18th – 23rd January 2014 at Vicenza, Italy

•

Bangkok Show from 25th February – 1st March 2014 at Bangkok, Thailand

7-11

Electronics and Computer Software Export Promotion Council (ESC) is mandated to promote India’s exports of Electronics, Telecom, Computer Software and IT Enabled Services. ESC offers a varied set of services to its members for accelerating exports.

Annual Report 2013-14

Some of the services of ESC are as follows: • Facilitates participation in Global Trade Shows/Expositions & Conferences. •

•

Undertakes Market Research/Studies and publicity Campaigns in overseas markets. ESC facilitates business interface between Indian & foreign companies through Buyers-Seller Meets, and locates new business partners for Indian electronics, computer software and IT companies.

During the period April 2013 to December 2013, Export of Electronics Hardware is estimated to have reached US$ 6333 million and Software Export is estimated to have reached US$ 62.05 billion. Export Promotional Activities The 3rd India Show and 14th edition of India soft was held during 26-27 November, 2013 at Mumbai, with the financial support from Ministry of Commerce & Industry. The Motto was GLOBAL CONNECT-LOCALLY. Memorandum Of Understanding ESC signed a MoU with MCF, Japan to enhance bilateral trade cooperation between India & Japan in the IT sector. Several Indian participating companies have reported to have inked business ventures, MoUs with the several visiting delegates across the world.

Annual Report 2013-14

EXHIBITION 170 Indian exhibitors showcased their expertise and innovations in several sectors of IT & ITES. FOREIGN DELEGATES INDIA IT SHOW attracted around 300 foreign delegates from 60 countries. ICT EXPO, 13-16 April, 2013, Hong Kong ICT Expo at Hong Kong attracts overwhelming response from buyers, visitors from global economies to source innovative ICT products and services. The Indian ICT companies enthusiastically participate under ESC’s banner at this unique global platform by displaying cutting-edge developments from information and communications technology to the most up-to-date hardware and software applications to help them improve their standing in today’s switchedon business world. ESC organized the India pavilion at the ICT Expo 2013 at Hong Kong Convention & Exhibition Centre, Hong Kong. The India Pavilion was visited by a very large number of global buyers. 30 Indian member companies participated under the Council’s banner. Japan IT Week, 8th to 10th May, 2013, Tokyo, Japan Japan is one of the most lucrative markets to explore IT business. There has been a continuous surge in India’s IT exports to Japan. To assist Indian IT companies explore and

Export Promotion Measures

On-line facility for Data Search. During the year 2012-13, export of Electronics Hardware and Software reached to a level of US$ 83.14 billion as compared to US$ 76.90 billion in 2011-12.

NEW LAUNCHES 60 participating Indian companies capitalized on the opportunity to launch innovative technology, products & services.

build business prospects with the Japanese IT buyers, the Council organized Indian participation at Japan’s largest IT Show-Japan IT Week. 14 Indian ICT companies exhibited their strength and capabilities at the event under the Council’s umbrella.

Chapter-5

CeBIT AUSTRALIA, 28th – 30th May, 2013, Sydney, Australia CeBIT Australia is the leading business event in the Asia Pacific region for Information and Communications Technology driving business strategy for local and international manufacturers, service providers, distributors, retailers and buyers of Information and Communications Technology to meet and talk business and finding out how to achieve long and short term savings through technologybased business solutions. 27 Indian companies participated under ESC’s banner. INDIAN TRADE SHOW, 3rd – 5th September, 2013, Dubai To promote Indian ICT industry create market niches in the entire Middle East, ESC organized participation of Indian ICT companies at the event. 10 Indian companies participated under ESC’s banner. GITEX DUBAI, 20-24 October, 2013, Dubai The UAE has emerged as an important destination for India’s ICT exports. India’s ICT exports continue to propel year by year. To further supplement the efforts and initiatives of the member companies, ESC has been participating at GITEX, one of the most important, exciting ICT exhibitions in the world. In view of the overwhelming response at the previous editions, ESC organized the participation of the Indian ICT fraternity at GITEX Dubai in 2013. 37 Indian companies

participated in GITEX Dubai 2013 under the Council’s banner. BUSINESS NETWORKING MEETS IN BELARUS and ARMENIA, 9th December – 12th December 2013 The strategic location of Belarus & Armenia which are emerging important IT hubs in the gigantic CIS region offer immense ICT potential to be tapped for India’s ICT exports industry to create niche. ESC sponsored an ICT delegation comprising of 10 members for exclusive Buyer Seller Meets under the Market Development Assistance programme of the Department of Commerce. BUYER SELLER MEETS: ABROAD BUSINESS NETWORKING MEETS MYANMAR 27th February, 2014

The booming economy of Myanmar offers immense ICT potential for Indian ICT players to create market niches. To provide market access, ESC sponsored an ICT delegation comprising of 10 members for exclusive Buyer Seller Meet, under the Market Development Assistance (MDA) programme of Department of Commerce, BUSINESS NETWORKING MEETS IN SOUTH AFRICA 10th March, 2014 South Africa is one of the most prominent markets in the Africa region. ESC organised Buyer Seller Meets of Indian electronics and IT companies with the electronics and IT companies in Durban from 10-11 March 2014 under the MDA scheme of Department of Commerce. 14 Electronics and IT Companies

Annual Report 2013-14

participated in the Buyer Seller Meets organised in Durban. BUSINESS NETWORKING MEETS IN CHILE 27th March, 2014 Latin America continues to be one of the most lucrative markets for exploring ICT potential. To assist the Indian ICT industry to diversify & strengthen their market share, ESC sponsored an ICT delegation to Chile under the Market Development Assistance (MDA) programme of Department of Commerce to Chile. 11 Electronics and IT Companies participated in the Buyer Seller Meets organised in Chile.

ESC organized a series of seminars with Ambassadors/High Commissioners of LAC & AFRICA region to promote IT industry networking at the INDIA IT SHOW 2013, as under: •

ESC LAC AMBASSADOR’s MEET- NEW DELHI- 12th August, 2013

•

ESC AFRICA AMBASSADOR’s MEET- NEW DELHI- 29th August, 2013

INDO: JAPAN- IT TRADE COOPERATION IT OPPORTUNITIES IN JAPAN- CHENNAI- 31st March, 2014 Japan is the second largest single IT software and services market in the world, preceded

Annual Report 2013-14

Council for Leather Exports (CLE)

The Leather Industry holds a prominent place in the Indian economy. This sector is known for its consistency in high export earnings and it is among the top ten foreign exchange earners for the country. With an annual turnover of over US$ 11 billion, the export of leather and leather products increased manifold over the past decades and touched US$ 5.91 billion during 2013-14, recording a cumulative annual growth rate of about 14.77% (5 years). The Leather industry is bestowed with an affluence of raw materials as India is endowed with 21% of world cattle & buffalo and 11% of world goat & sheep population. Added to this are the strengths of skilled manpower, innovative technology, increasing industry compliance to international environmental standards, and the dedicated support of the allied industries. The leather industry is an employment intensive sector, providing job to about 2.5 million people, mostly from the weaker sections of the society. Women employment is predominant in leather products sector with about 30% share.

Export Promotion Measures

“BUSINESS OPPORTUNITIES IN THE IT SECTOR” WITH THE VISITING US DELEGATION FROM INDIAN APOLIS, US, 18th APRIL 2013, NEW DELHI A business delegation from INDIAN APOLIS, US visited India with an objective to explore business opportunities in the IT sector with the Indian IT companies. The Council organised an exclusive meet of its member companies with the visiting US delegation.

only by the USA. However, India’s IT exports to Japan is miniscule. The ESC EPC organized a seminar in association with the Indo Japan Chambers of Commerce on 31st March, 2014 to enhance India’s IT services exports to Japan and to assist the Indian IT industry to further their brand image in Japan. This was also an exercise to create awareness in the Japan IT Week, wherein the ESC EPC is organizing participation of its member exporters to exhibit under the Council’s banner.

India is the second largest producer of footwear and leather garments in the world.

•

Constant human resource development programme to enhance productivity

The major production centers for leather and leather products in India are located in Chennai, Ambur, Ranipet, Vaniyambadi, Vellore, Pernambut, Trichy, Dindigul and Erode Kolkata Kanpur, Agra, Noida, Saharanpur, Mumbai, Jallandhar, Bangalore, Hyderabad, Ambala, Gurgaon, Panchkula, Karnal and Faridabad; Delhi; Dewas, Calicut and Ernakulam / Cochin

•

Increasing use of quality components

•

Shorter prototype development time

•

Delivery compliance

•

Growing domestic market for footwear and leather articles

Highlights of Leather Product Segments: •

Tanning Sector – Annual production 2 billion Sq.ft. Accounts for 10% of world leather requirement. Indian colors continuously being selected at the MODEUROPE Congress

•

Footwear Sector – Second largest footwear producer after China. Annual Production 2065 million pairs. Huge domestic retail market 1950 million pairs (95%) are sold in domestic market. Footwear export accounts for 42.29% share in India’s total leather & leather products export. The Footwear product mix Gents 54%, Ladies 37% and Children 9%

•

Leather Garments Sector – Second largest producer with annual production capacity of 16 million pieces. Third largest global exporter. Accounts for 9.91% share of India’s total leather export

•

Leather Goods & Accessories Sector including Saddlery & Harness – Fifth largest global exporter. Annual production capacity – 63 million pieces of leather articles, 52 million pairs of Industrial gloves & 12.50 million pieces of Harness & Saddlery items. Accounts for 26.19% share of India’s total export

Chapter-5

Strengths of Indian leather sector •

Own raw material source – 2 billion sq ft of leather produced annually

•

Some varieties of goat / calf / sheep skins command premium position

•

Strong and eco-sustainable tanning base

•

Modernized manufacturing units

•

Trained / skilled manpower at competitive wage levels

•

World-class institutional support for Design & Product Development, HRD and R & D.

•

Presence of support industries like leather chemicals and finishing auxiliaries

•

Presence in major markets – Long Europe experience

•

Strategic location in the Asian landmass

Emerging strengths •

Design development initiatives institutions and individuals

•

Continuous modernization technology upgradation

•

Economic size of manufacturing units

by and

Annual Report 2013-14

Product-wise Brands sourced from India:

Leather Goods / Accessories : Coach, Liz Claiborne, Harrods, Yves St, Laurent, Tommy Hilfiger, Etienne Aigner, Geoffrey Beene, Marks & Spencer, Guess, Next, Pierre Cardin, Prada, GAP, Levis, H & M, British Home Stores, Banana Republic, Furla, American Eagle Outfitters, Bracciliani, Walmart etc. Indiaâ&#x20AC;&#x2122;s Export of Leather and Leather products for Five years

Table-5.7 Product-wise Export performance

(million US$)

2009-10

2010-11

2011-12

2012-13

2013-14

627.95

841.13

1024.69

1093.73

1284.57

1507.59

1758.67

2079.14

2066.91

2531.05

Leather Garments

428.62

425.04

572.45

563.54

596.16

Leather Goods

757.02

855.78

1089.71

1180.82

1351.50

83.39

87.92

107.54

110.41

145.54

3404.57

3968.54

4873.53

5015.41

5908.82*

16.57%

22.80%

2.91%

17.81%

Finished Leather Footwear

Saddlery & Harness Total % Growth Source: (DGCI&S) *Provisional

Annual Report 2013-14

Export Promotion Measures

Footwear : Acme, Ann Taylor, Bally, Charter Club, Clarks, Coach, Colehann, Daniel Hector, Deichmann, DKNY, Double H, Ecco, Elefanten, Etienneaigner, Florsheim, Gabor, Geoffrey Beene, Guess, Harrods, Hasley, Hush Puppies, Kenneth Cole, Liz Claiborne, Marks & Spencer, Nautica, Next, Nike, Cole Haan, Nunn Bush, Pierre Cardin, Reebok, Rockport, Salamander, Stacy Adams, Tommy Hilfiger, Tony Lama, Versace, Yves St. Laurent, Zara, Johnston & Murphy, Docksteps, Timberland, Armani, Geox, Diesel, Ted Baker, Lacoste, Kickers, Calvin Klein, Sioux, Brasher, Zegna, Massimu Dutti, Buggatti, Lloyd, Christian Dier, Salamander, Camper, Bata, Espirit, French Connection, Legero, Mercedez, H & M and many more famous brands.

Leather Garments : Armani, Zegna, Abercrombie & Fitch, Marco Polo, Mango, Colehaan, Andre Maarc, Guess Pierre Cardin, Tommy Hilfiger, Versace, DKNY, Liz Claiborne, Ann Taylor, Nautica, Kenneth Cole, Charter Club, Daniel Hector.

Chart 5.1 % Share of Leather Products in Export Performance (2013-14)

2% 24%

FINISHED LEATHER

22%

LEATHER FOOTWEAR LEATHER GARMENTS

42%

10%

Chapter-5

LEATHER GOODS SADDLERY AND HARNESS

Major Markets: The major markets for Indian Leather & Leather Products are Germany with a share of 12.92%, USA 11.32%, U.K. 11.20%, Italy 8.73%, France 5.99%, Hong Kong 7.98%, Spain

5.21%, Netherlands 3.66%, China 2.60%, Denmark 1.51%, UAE 3.05%, Belgium 1.62%. These 12 countries together accounts for nearly 76% of India’s total leather & leather products export.

Table-5.8 Export of leather & leather products to different countries – 5 years

(million USD)

COUNTRY Germany Italy UK USA Hong Kong Spain France Netherlands U.A.E. Portugal

2009-10

2010-11

2011-12

2012-13

2013-14

491.28 398.56 456.59 296.37 251.53 219.13 255.29 137.10 69.06 39.39

575.38 455.76 505.20 348.13 325.20 247.99 280.04 155.43 74.27 39.62

731.00 528.35 543.00 439.54 359.47 296.06 303.84 198.70 109.28 46.55

631.23 438.53 606.02 526.13 441.45 267.17 320.81 189.74 126.52 38.35

763.55 515.59 661.98 669.17 471.56 307.94 353.80 216.54 180.27 51.64

% Share 2013-14 12.92% 8.73% 11.20% 11.32% 7.98% 5.21% 5.99% 3.66% 3.05% 0.87%

Annual Report 2013-14

65.39 48.58 53.92 55.73 36.07 27.66 29.04 24.60 27.10 28.01 12.77 21.01 17.19 6.68 10.08 4.29 306.42 3404.57

80.89 75.48 51.81 57.75 31.36 29.32 31.31 32.14 25.02 27.01 10.05 22.14 21.74 19.99 20.15 5.98 399.45 3968.54

113.06 124.75 67.84 74.18 44.33 40.02 38.21 41.18 33.54 38.43 10.96 41.68 33.04 33.04 25.24 7.29 521.14 4873.53

92.97 124.36 74.16 89.65 45.91 45.71 46.77 36.07 30.30 36.46 8.41 42.37 38.70 28.54 26.82 7.23 572.69 5015.41

95.73 153.57 78.31 89.37 50.61 51.43 58.17 48.16 32.75 39.71 11.97 38.67 48.73 51.57 27.17 9.66 725.25 5908.82*

1.62% 2.60% 1.33% 1.51% 0.86% 0.87% 0.98% 0.82% 0.55% 0.67% 0.20% 0.65% 0.82% 0.87% 0.46% 0.16% 12.27% 100.00%

Export Promotion Measures

Belgium China Australia Denmark Sweden Canada Korea Rep. South Africa Switzerland Austria Greece Saudi Arabia Japan Russia Indonesia New Zealand Others Total

Source: DGCI&S *Provisional

Chart 5.2 Region-wise Export of Leather & Leather Products 2012-13 in (%) 5.02 19.08 Central East

36.88 14.92

North South West

24.08

Annual Report 2013-14

Chapter-5

Future Outlook: The Government of India had identified the Leather Sector as a Focus Sector in the Indian Foreign Trade Policy in view of its immense potential for export growth prospects and employment generation. Accordingly, the Government is also implementing various Special Focus Initiatives under the Foreign Trade Policy for the growth of leather sector. With the implementation of various industrial developmental programmes as well as export promotional activities; and keeping in view the past performance, and industryâ&#x20AC;&#x2122;s inherent strengths of skilled manpower, innovative technology, increasing industry compliance to international environmental standards, and dedicated support of the allied industries, the Indian leather industry aims to augment the production, thereby enhance export, and resultantly create additional employment opportunities.

Export Promotional Activities

Fairs of Shoes, Leather & Leather Goods, Poznan Fashion Fair, Poland, September 3-5, 2013

All China Leather Exhibition, Shanghai, Sep 4-6, 2013

MICAM The Shoe Event, Milan, Italy, September 15-18, 2013

Fashion Access, Hong Kong, September 25-27, 2013

Leather Tech, Bangladesh, October 2-5, 2013

Expo Riva Schuh Fair, Riva del Garda, Italy, January 11-14, 2014

MM&T-Materials Manufacturing & Technology, Hong Kong, March 31April 2, 2014

Market Promotional Activities undertaken with MAI Assistance during 2013-14 Total of 6 International fairs organized under MAI funding Support for the year 2013-14.

Market Promotional Activities Undertaken with MDA Assistance during 2013-14

Total of 352 exhibitors participated.

Total of 9 International fairs organized under MDA funding for the year 2013-14.

S. A-INTERNATIONAL FAIRS UNDER MAI No SCHEME

Total of 288 exhibitors participated.

Spoga Horse, Sep 8-10, 2013

MIPEL Fair, Sep 15-18, 2013

CIFF Moda Shanghai, Sep 4-6, 2013

Istanbul Leather Fair, November 21-22, 2013

MIPEL Fair, March 2-5, 2014

Fashion Access, March 31-April 2, 2014

Table-5.9 S. INTERNATIONAL FAIRS UNDER MDA No. SCHEME 1 2

Expo Riva Schuh Fair, Riva del Garda, Italy, June 15-18, 2013 Magic Show, Las Vegas, USA. August 18-21, 2013

Table-5.10

Annual Report 2013-14

Table-5.11 S. B - BUYER SELLER MEETS IN INDIA & No ABROAD 1

BSM in South Africa March 13 & 14, 2014

BSM in Dubai December 9 & 10, 2013

Two-Day Reverse Buyer-Seller Meets in Delhi, Chennai and Kolkata

•

Besides, Council participated in the Magic show, February 2014 organized under Self Financing basis with CLE 8 member exporters

•

6. Policy and Support Measures Announced for Leather Sector Annual Supplement 2013-14 to Foreign Trade Policy 2009-14

•

In the Annual Supplement 2013-14 to the Foreign Trade Policy 2009-14 announced on April 18, 2013, the following benefits were announced for the leather sector.

Other Measures under Foreign Trade Policy

•

The Zero Duty EPCG and 3% EPCG Schemes have been harmonized into

Annual Report 2013-14

As per DGFT Notification No. 71(RE2013)/2009-14 dated 27th February

Export Promotion Measures

 About 34 Seminars / Workshops were conducted during 2013-14 (April 2013 to March 2014) with presentation from eminent experts / resource persons. 1500 Members are expected to be benefited out of these events.  Aggressive Publicity programmes undertaken / being undertaken to create better awareness about capabilities of Indian leather industry in global markets, thereby further build up the image of India.

one scheme which will be called as Zero Duty EPCG Scheme covering all sectors. The new Zero Duty EPCG Scheme has come into effect from April 18, 2013. Incremental Exports Incentivisation Scheme:- The incremental Exports Incentivisation Scheme was announced in Dec. 2012. Under this scheme, the exporters are eligible for 2% duty credit scrip on the FOB value of exports to USA, Europe and Asia (excluding Singapore, UAE and Hong Kong) on the incremental growth during the period 01.01.2013 to 31.3.2013 compared to the period from 01.01.2012 to 31.3.2012. In the Annual Supplement to FTP 2009-14, the scheme has been extended for the year 201314 on annual basis. Also, exports to 53 notified countries Latin America and Africa have also been added under this scheme. The 2% duty credit scrip under Focus Product Scheme was extended to all categories of synthetic footwear falling under HS Code 6402 for exports made from 1.5.2013 onwards. Outer Soles and Heels of Rubber / Plastics (HS Code 640620) was included under Focus Product Scheme) with a duty credit scrip of 2% for exports made from 1.5.2013 onwards. Norway was included under Focus Market Scheme while Venezuela has been included under Special Focus Market Scheme, for exports made with effect from 1.5.2013 onwards.

2014 and Public Notice No. 53 (RE2013)/2009-14 dated 27th February 2014, Finished Leathers falling under 4107, 4112000 and 4113 in Table 3 of Appendix 37 D will be entitled for 2% additional duty credit scrip under Market Linked Focus Product Scheme in addition to the 2% Duty Credit Scrip under Focus Product Scheme for exports to notified EU countries made with effect from 1.3.2014 to 31.8.2014. •

Interest Subvention on Rupee Export Credit was enhanced for SME units in leather industry from 2% to 3% for the period 1.8.2013 to 31.3.2014.

Chapter-5

Interim Budget 2014-15 In the Interim Budget announced on February 17, 2014, the Central Excise duty for machinery and equipments falling under Chapter 84 (including the machinery for preparing, tanning or working hides, skins or leather or for making or repairing footwear or other articles of hides, skins or leather, other than sewing machines falling under tariff no. 8453) has been reduced from 12% to 10%. This reduction will be applicable till June 30, 2014 as notified by Central Excise Notification No. 04/2014 dated 17th February 2014.

asic Chemicals, Pharmaceuticals & B Cosmetics Export Promotion Council (CHEMEXCIL):

Basic Chemicals, Pharmaceuticals and Cosmetics Export Promotion Council, popularly known as CHEMEXCIL is dealing with promotion of exports of Dyes and Dye intermediates, Basic Inorganic and Organic Chemicals, including Agro Chemicals,

Cosmetics, Toiletries, Essential oils, Castor oil and its derivatives, etc. from India to various countries abroad. Table-5.12

US$ million

April 2012March 2013

April 2013March 2014

Growth %

12418.22

13183.52

6.16%

The export performance of the Council’s items for the period April 2013 to March 2014 was US$ 13183.52 million as compared to US$ 12418.22 million of the corresponding period of previous year, registering a growth rate of 6.16%. CHEMEXCIL had organized its 39th & 40th Export Award Function on 30th of August, 2013 at the Trident Hotel, Mumbai by honouring 75 outstanding exporters who had excelled in their export performance during the years 2009-10 and 2010-11. The Chief Guest at the function was the Hon’ble Union Minister of Commerce & Industry, Shri Anand Sharma. Due to the withdrawal of GSP scheme by the EU countries w.e.f. 1.1.2014, Indian products specially Organic & Inorganic Chemicals, are become expensive as per the percentage of Basic Custom Duty. In order to resolve the same, CHEMEXCIL had already taken up the matter with the Ministry of Commerce & Industry with a request to consider to give some kind of benefit to the memberexporters concerned under the Market-linked Focus Products Scheme (MLFPS) or any other Scheme which is deemed fit.

Annual Report 2013-14

CHEMEXCIL had already taken up the matter regarding removal of duty inversion on DTA sale of Fatty Alcohols by EOUs, with the Central Board of Excise & Customs as this burning issue is still remained unresolved and is seriously affecting the economic viability of our member exporters. In order to enhance the exports and create awareness in the international market, CHEMEXCIL had also implemented a lot of other export promotional activities for the benefit of our member-exporters which included participation in Exhibitions/BuyerSeller Meets both in India and abroad.

With regard to EU’s REACH Legislation, CHEMEXCIL has already disbursed 50% of ECHA Regn. fee under REACH MAI to all the concerned firms who had registered their substances in the EU during the 1st phase of Registration deadline, i.e in 2010 and who had submitted their Registration claims through CHEMEXCIL. CHEMEXCIL has already recommended to the Ministry of Commerce & Industry for disbursement of 50% of ECHA Regn. Fee incurred to the firms who had registered their substances in the EU during the 2nd phase of Registration deadline, i.e. in May 2013 and who had submitted their documents of the same through CHEMEXCIL under REACH MAI and outcome of which is awaited. Indian Chemical Inventory: In order to create Chemical Management Programme in the Country and also to protect human health and the environment

Annual Report 2013-14

Common Effluent Treatment Plant (CEPT) CHEMEXCIL had already submitted Budget proposal to the Government of Maharashtra, for upgradation and modification of Common Effluent Treatment Plant(CEPT) at Lote Parshuram and Roha in Maharashtra. Accordingly, the said proposal was sanctioned by the Government of Maharashtra and they had released an amount of Rs.38.25 crs. to the MIDC, Maharashtra and further work is in progress.

The Plastics Export Promotion Council (PLEXCONCIL)

The Plastics Export Promotion Council has been participating in International Trade fairs and organising Buyer – Seller Meets (BSMs) round the globe and Reverse Buyer – Seller Meets (BSMs) in India. During 2013-14, the Council organised participation in seven International Trade fairs under the MDA/MAI Schemes, apart from organising a Buyer –Seller Meet in the Latin American region, and a Reverse BuyerSeller Meet in Chennai, which coincided with the Poly India 2013 exhibition held from April

Export Promotion Measures

European Union’s REACH Regulation:

of Indian citizens, a Model chemical inventory of 4600 substances was made by CHEMEXCIL from data already available from DGCI&S, substances pre-registered under REACH, Public Liability Insurance Act, and substances in CHEMEXCIL’s Directory. CHEMEXCIL had submitted a Presentation to Secretaries of both the Ministry of Commerce & Industry and the Ministry of Chemicals & Fertilizers and we await their final decision to continue this project.

25-27, 2013 in Chennai. International Trade fairs were organised in some of the potential emerging markets such as Ukraine, Myanmar and Sudan, in order to diversify exports from the plastics sector.

Chapter-5

In order to facilitate product innovation and design from the Indian plastic Industry, the Council’s proposal for setting up a service centre at Mumbai, for Product Design & Prototyping under the ASIDE scheme has also been approved. This will serve as a common facility for Product Design & Prototyping for enterprises in the MSME sector which account for over 85% of the Indian plastic industry. The export performance in 2013 -14, has been encouraging with a growth of 14.11% for the period April – January 2014. The total exports from the plastics sector in 2013 – 14 is expected to exceed US$ 7.50 billion.

F. Chemicals and Allied Products Export Promotion Council (CAPEXIL) CAPEXIL – India’s Premier Export Promotion Council was set up in 1958 by the Ministry of Commerce, Government of India. The vision of CAPEXIL is to catalyze development and promote India’s export of a wide spectrum of Chemical based and Allied products and ‘thereby stimulate the country’s economic growth and help in employment generation. CAPEXIL is a Multi Products Export Promotion Council and it has sixteen different group of products subdivided broadly under Mineral and Non-Mineral Sector. These panels representing the following: MINERALS & ORES: Natural Stones and Products, Processed Minerals, Bulk Minerals and Ores

NON-MINERALS: Rubber Products, Auto Tyres and Tubes, Paints, Printing Ink and Allied Products, Glass and Glassware, Plywood and Allied Products, Ceramics and Allied Products incl. Refractories, Cement, Clinkers and Asbestos Cement Products, Paper, Paper Board and Paper Products, Books, Publications & Printing, Animal By Products, Ossein and gelatine, Graphite Products and Explosives & Miscellaneous Products. It has around 4500 member-exporters (manufacturers & merchant exporters) across India who are exporters of 16 broad product genres and represents the best in their fields. Their quality products enjoy the preference of all major markets across the globe. SHARE IN INDIA’S TOTAL EXPORTS India’s merchandise exports grew by 3.98 per cent to $ 312.35 billion in FY 2013-14. Capexil is having 4.45% share (US$ 13.89 billion) in India’s Total Export and it is one of the few Export Promotion Councils of India with an ISO 9001:2000 Certification. Exports of overall CAPEXIL products have grown CAGR of 2.33% for the past 5 years. EXPORTS DURING 2013-14 During the year 2013-14, CAPEXIL’s overall exports have reported an increase of 5.05% as compared to corresponding period of 2012-13. Out of which Non-Mineral Sector contributed USD 8082.62 Million showing a growth of 5.38% and Mineral Sector contributed USD 5805.78 million showing a growth of 4.59% compared to previous year. CAPEXIL’s overall exports has reported an increase of 5.05% as compared to corresponding period of 2012-13.

Annual Report 2013-14

Chart 5.3 Overall Exports of Capexil's Products Over the Last 5 years (Value in US $ Million) 18000

16418

16000 14000 12000

12375

15631 13220

13135

13888

10000 8000 6000 4000 2000 0 2008-09

2009-10

2010-11

2011-12

2012-13

2013-14

Table-5.13 Panelwise Exports during 2013-14 Value in US $ Million

Panels A. Minerals and Ores Bulk Minerals and Ores Granite, Natural Stones and Products Processed Minerals TOTAL (A) B. Non-Minerals Auto Tyres and Tubes Paper, Paper Board and Product Rubber Products Paints, Varnishes and Allied Products Plywood and Allied Products Glass and glassware Ceramics and Allied Products Graphite, Explosives and Accesories Books, Publications and Printing Cement, Clinkers & Asbestos Miscellaneous Products Animal By Product Ossein and Gelatine TOTAL (B) GRAND TOTAL (A+B)

2012-13

2013-14

% Change

2682.44 1792.48 1075.88 5550.8

2772.35 1993.76 1039.67 5805.78

3.35% 11.23% -3.37% 4.59%

1731.46 993.97 995.16 724.81 628.6 614.34 546.09 465.27 332.4 228.12 270.38 65.48 73.58 7669.66 13220.46

1685.59 1071.28 1056.69 768.07 729.85 657.90 637.21 402.24 338.80 302.17 251.17 100.84 80.81 8082.62 13888.40

-2.65% 7.78% 6.18% 5.97% 16.11% 7.09% 16.69% -13.55% 1.93% 32.46% -7.10% 54.00% 9.83% 5.38% 5.05%

Source: DOC Export Import Data Bank

Annual Report 2013-14

Export Promotion Measures

EXPORT PROMOTION ACTIVITIES ORGANISED DURING 2013-14 The Council right from the beginning has been playing the role of a facilitator towards the promotion of export of products viz. chemical based & allied products as entrusted to it by the Government. In order to help its member-exporters to compete successfully in the world markets, the Council rendered assistance as follows:

Chapter-5

• Identify markets for their products. • Introduce them to appropriate overseas importers. • Assist them financially or otherwise in their efforts. • Advise them on situations in the different overseas markets by conducting studies & surveys. • Provide opportunities to give them and their products exposure in the overseas markets by sponsoring their delegations and items. • Advise them on import export policy and procedures. • Resolve their problems about shipping and transport. • Maintain liaison with the authorities to convey to them the requirements of industry and trade and arrange adaptation of policy framework accordingly. During the year 2013-14, the marketing activities of the Council are manifold and in addition to direct marketing, structured promotional events are organized on a regular basis so as to create awareness on the capability of the products under the purview

of CAPEXIL. The various promotional activities carried out on a regular basis are product specific delegation to select countries, Catalogue Show, Buyer-Seller Meets and participation in overseas trade fair etc. Table-5.14 EVENTS/ACTIVITIES OF CAPEXIL EXECUTED DURING 2013-14 S. Activity No. 1 London Book Fair, London 2 Coverings 2013 Atlanta, Georgia, USA 3 Nigeria International Book Fair, Nigeria 4 Frankfurt Book Fair, Germany 5 Sharjah International Book Fair, Sharjah 6 Guadalajara International Book Fair, Mexico 7 Rubber Products World Expo & Tire Export 2014

Period of execution 15th to 17th April 2013 29th April to 2nd May 2013 6th to 11th May 2013 9th to 13th October 2013 6th to 16 November 2013 30th November to 4th December 2013 1st to 16th March 2014

Export Target for 2014-15 The Council has set an export target of US $ 15,661.36 Million in dollar terms for the year 2014-15 from US $ 13,888.40 Million in 201314. To realize this, exports have to grow at an annual growth of nearly 13%. The overall strategy is to realize this goal is articulated below:

Annual Report 2013-14

Product Strategy Aggressively promoting export growth of

significant/high value products under the purview of CAPEXIL.

Table-5.15 IDENTIFICATION OF SIGNIFICANT PRODUCTS FOR EXPORT Name of the Panels Granite, Natural Stones & Products

Processed Minerals

Auto Tyres & Tubes

Paints, Printing Ink & Allied products Glass and Glassware

Ceramics & Allied Products incl. Refractories

Annual Report 2013-14

Other refractory ceramic goods, containing by weight more than 50% of alumina or of a mixture or compound of alumina and silica, Brake linings and pads, Electrical insulators of ceramics, Refractory bricks, blocks, tiles and similar refractory ceramic construction al goods containing by weight more than 50% of alumina, of silica or of a mixture or compound of these products. Emery, Natural corundum, natural gamet and other natural abrasives.

Export Promotion Measures

Bulk Minerals and Ores Rubber Products

Thrust Products Granite, worked Monumental or Building stones and articles thereof, Sandstone Merely cut by sawing or otherwise into blocks or slabs of a rectangular shape, sandstone crude or roughly trimmed, Monumental or building stone, other than sand stone and granite. Aluminium oxide, other than artificial corundum, Aluminium ores and concentrates, kaolin and other kaolin icc lays, Quartzite other than crude or roughly trimmed. Iron ores and concentrates, Non agglomerated, Zinc ores and concentrates, Lead ores and concentrates. Other floor coverings and mats, conveyor belts or belting reinforced only with textile materials, other articles of vulcanized rubber other than floor coverings and mats, erasers, gaskets, boat or dock fenders, plates, sheets and strip of non- cellular rubber, reclaimed rubber in primary forms or in plates, sheets or strip. New pneumatic tyres of rubber, of a kind used on buses or lorries, New pneumatic tyres of rubber, of a kind used on motor cars (including station wagons and racing cars). Printing ink, other than black, Titanium ores and concentrates, Pigments and preparations based on titanium dioxide-other, Pigments and preparations based on chromium compounds. Glass envelopes other than for electric lighting and cathode ray tubes, Glass bead, imitation pearls, Other articles of glass, Glass containers, spectacle lenses of glass, Glass cubes and other glass small wares, whether or not on a backing, for mosaics or similar decorative purpose.

Chapter-5

Plywood & Allied products

Wooden furniture other than those used in offices, kitchen and bedroom, Other articles of wood, other than cloths hangers, Plywood consisting solely of sheets of wood, each ply not exceeding 6mm thickness with at least one outer ply of tropical wood, Wood sawn or chipped lengthwise, other than coniferous, mahogany, Virola, Meranti, Sapeli.

Cement, Clinkers & Asbestos Cement products

Portland cement, other than white cement, Tube pipes or tube or pipe fittings, or as best os cement, of cellulose fiber cement or the like, tiles, flag stones, bricks and similar articles of cement, of concrete or of artificial stone.

Paper, Paper Board &Paper Products

Other paper, paperboard, cellulose wadding and webs of celluloses fibers, handmade paper and paper board, Paper and paper board, other than those used for writing, printing or other graphic purposes and kraft paper, Folding cartons, boxes and cases of non-corrugated paper or paper board.

Books/Publications & Printing

Newspaper, Journals and periodicals, other than those appearing at least 4 times a week, Printed books, brochures, leaflets and similar printed matter, other than those printed in single sheets or dictionaries and encyclopedias, other printed matter including printed picture and photographs, other than trade advertisement materials, commercial catalogues, and pictures, designs and photographs.

Animal By Products / Osse in & Gelatin

Gelatin, Osse in and bones treated with acid.

Graphite, Explosives & Electrodes of a kind used for furnaces, Artificial graphite, Artificial Accessories graphite, colloidal or semi-colloidal graphite-other, Prepared explosives, other than propellant powders. Miscellaneous products

Matches other than fireworks, Activated carbon, Mineral or chemical fertilizers, potassic - other, Ammonium nitrate, whether or not in aqueous solution.

Market Strategy A market diversification strategy based on the changing dynamics of growth in the world economy is necessary to ensure sustained growth of exports of Chemical based Allied

Products. The demand in the traditional markets of the developed western world, North America and Europe, is projected to be relatively sluggish due to slowing output expansion in these economies. Therefore, the core of the market strategy must therefore

Annual Report 2013-14

be retain presence and market share in our traditional markets, move up the value chain in providing products in these old developed

country markets; and open up new vistas, both in terms of markets and new products in these new markets.

Table-5.16 VITAL MARKETS FOR UNDERTAKING EXPORT PROMOTION ACTIVITIES Name of the Panel

Regions/Country

Granite, Natural Stones China, Italy, Singapore, UK, Taipei, Spain, Poland, France, Belgium, & Products Germany Processed Minerals

Canada, Russia, USA, China, Norway, South Africa, Iceland, Germany, Netherland, Japan, France, Italy

Bulk Minerals and Ores China, Japan, Korea, Germany, Taiwan, Italy, France, Saudi Arabia Arabia, UK, Netherlands China, Germany, USA, France, Romania, Poland, Spain, Luxembourg, UK, Canada

Auto Tyres and Tubes

USA, Brazil, Nigeria, Germany, Japan, UAE, France

Paints, Printing ink & allied products

Germany, France, Netherland, UK, Spain, China, Italy, USA, Austria, Belgium

Glass and Glassware

USA, France, Italy, Spain, Belgium, Germany, UK, Canada

Ceramics & Allied products incl. Refractories

USA, Germany, France, UK, Japan, Russia, Korea, Italy

Plywood and allied products

USA, China, Japan, UK, Italy, Germany, France, Egypt

Cement, Clinkers & Asbestos Cement products

USA, France, Netherland, Sri Lanka, Ghana, Iraq, Singapore

Paper, Paper Board & Paper products

USA, Germany, UK, France, Italy, Netherland, Belgium, Japan

Books/Publications & Printing

USA, UK, Canada, France, Germany, Hong Kong, Switzerland

Animal By products/ Ossein & Gelatin

Japan, Belgium, UK, Netherland, Germany, France, USA

Export Promotion Measures

Rubber Products

Graphite, Explosives & USA, Iceland, Russia, China, Canada, Korea, Norway, Germany, Accessories Turkey, Italy, Kazakhstan Miscellaneous products Germany, Ukraine, Nigeria, France, Kazakhstan, Belgium

Annual Report 2013-14

G. Shellac and Forest Products Export Promotion Council (SHEFEXIL) Table-5.17 Export Performance of Shefexil for the Period FY 2013-14 and as on April, 2014

Chapter-5

Panel

2009-10

2010-11

2011-12

661.36

April 12March 2013 947.11

April 13March 2014 (P) 834.97

Vegetable Saps & Extracts

310.87

407.21

Guar Gum

239.15

Sesame Seeds

621.29

3,354.82

3919.24

2028.75

-48.24%

4,156.85

315.28

483.97

553.25

528.08

592.49

12.20%

562.56

Plant and Plant portions

116.74

141.1

173.25

225.52

215.77

-4.32%

246.42

Fixed vegetable oil, cake & others

60.01

49.63

60.79

60.39

51.34

-14.99%

64.25

Shellac & Lac Based Products

23.22

46.63

6.13

19.14

17.81

-6.95%

93.79

Other Vegetable Materials

50.35

70.8

51.95

57.84

-3.60%

63.72

5.11

9.05

24.83

16.55

18.87

14.02%

17.6

1,120.72

1,829.69

4,886.38

5776.03

3817.84

-33.902

6,214.71

Niger Seeds Total

S ports Goods Export Promotion Council (SGEPC)

The Sports Goods Export Promotion Council (SGEPC) was established in the year 1958 with an objective to promote the exports of Sports Goods & Toys. The Council represents leading manufacturers and exporters of sports goods and toys in India. During 2013-14, the total exports of sports goods and toys is US $ 256.02 million (provisional), an increase of 19.10% over exports of US $ 214.95 million in the year 2012-13. The top items of exports during 2013-14 were Inflatable Balls, Cricket Bats, General Exercise Equipment, Sports Nets and Protective Equipment for Cricket. The contribution of top 5 items in the total export of sports goods from this sector was 54 %. The top three countries of exports are UK, Australia and USA.

% Growth Projected Export 2013-14 -11.84% 1,009.52

Sports Goods & Toys continue to be focus products under Foreign Trade Policy. The MDA and MAI schemes provide financial assistance to the Council to encourage exporters to reach unchartered territories. The ceiling for amount reimbursement to exporters has also been enhanced. Both the Sports Goods & Toys sectors are eligible for duty credit scrip of 7% under Focus Product scheme. Few essential items for manufacturing of Sports goods are also available under duty free import scheme, which allows duty free import of these inputs up to 3% of FOB value of exports. Participation in promotional activities during 2013-14: 1. Buyer Seller Meet in Chile and Brazil (18th- 22nd, Nov 2013) 2. Hongkong Toys and Games Fair, Hongkong (6th â&#x20AC;&#x201C; 9th Jan, 2014)

Annual Report 2013-14

3. ISPO Munich, Germany (26th- 29th Jan, 2014) 4. Spielwarenmesse International Toy Fair (29th Jan- 3rd Feb, 2014)

Engineering Export Promotion

EEPC INDIA

The share of engineering sector to total merchandise exports from India has also gone up to nearly 21%, making it the highest net foreign exchange earner of the country. Since inception, EEPC India has also played a pivotal role in transforming the profile of Indian engineering exports from a supplier of low value items to developing nations, to a vibrant exporting nation with more than 33% in the product-mix accounting for capital goods and machinery and the developed nations accounting for almost 35% of total exports.

Annual Report 2013-14

Export Promotion Programmes of EEPC EEPC India provides multifarious services to both, Indian exporters, and overseas buyers. Each year EEPC India consciously plans its calendar of export promotion events, which include (i) Exclusive Indian Engineering Exhibitions abroad (ii) Participation in major Trade and Engineering Exhibitions worldwide (iii) Buyer Seller Meets in India and abroad (iv) Inviting/Fielding Trade Delegations (v) Catalogue Shows Overseas (vi) Market Surveys/Market specific Seminars (vii) Product specific Conference/Workshop (viii) Exhaustive Mailing Campaign. The Indian Engineering Sourcing Show (IESS) was launched in 2013 as a premium show and announcing to the international market to the ability and growth of Indian engineering industry to showcase the Indian products/ services. The vast number of participants

Export Promotion Measures

Established in 1955, EEPC INDIA (formerly Engineering Export Promotion Council), is a Government of India sponsored nodal organisation for the promotion of exports of engineering goods, projects and services from India. Over the last five decades, EEPC India has grown to be the largest Export Promotion Council, with membership strength of nearly 13,000 Indian firms, covering the entire spectrum of engineering industry consisting of large Corporate Houses, Small and Medium Enterprises and Trading & Manufacturing Companies. EEPC India is the first export promotion organisation in India to have received ISO 9002 certification. It is also the first organisation in India to have achieved ISO 9001:2008 certification for designing and organising exclusive engineering exhibitions abroad.

EEPC India also provides a host of services to overseas buyers at free of cost so as to facilitate their procurement of goods from India. EEPC acts as a dynamic vehicle and link between Indian exporters and foreign buyers and facilitate for activities like identifying suitable suppliers in India, conforming to buyers needs, arranging visits of overseas buyers, facilitating exploratory missions and delegations to India, providing supplierâ&#x20AC;&#x2122;s profile, assisting in establishing collaborations for the third country exports, creating awareness amongst overseas buyers on Indianâ&#x20AC;&#x2122;s technical expertise and supply capability, acquainting overseas buyers with business climate and policies prevailing in India, helping in amicable settlement of trade disputes and removing operational constraints, etc.

in IESS 2013 and 2014 has established the credentials of India as a sourcing country for engineering sector.

Chapter-5

Engineering Export Scenario During the last five years, engineering exports have achieved a Compound Annual Growth Rate (CAGR) of 12%. Indiaâ&#x20AC;&#x2122;s exports of engineering goods grew at 25.2% (CAGR) during 2000-01 to 2007-08. In 2008-09, the growth moderated to 18.7% and in 200910 it declined by 19.6% because of global recession, with its share in total exports falling to 18.2%. Engineering exports touched USD 49.8 billion in 2010-11 recording growth of over 50% over 2009-10 and further to US 58.22 in 2011-12 with a growth rate of 16.88% from 2010-11. Over the years, the scenario has completely changed and as of date, about 34% of the total engineering exports are made to developed countries. After relatively a slowdown of export, the engineering sector started bouncing back from the second quarter of 2013-14 and this continued in the first month of the third quarter, with a growth rate of 35.65%. The absolute value of Engineering exports during 2013-14 was USD 62.26 billion over USD 56.82 billion recorded in 2012-13. The positive boom in the growth rate of export of engineering goods were attributed to low base effect, depreciation of rupee besides remedial measures taken by the Government. The panels which registered a high growth rate of exports during 2013-14 vis-Ă -vis 201213 were Iron and Steel (13.50%), Aluminium and products of Aluminium (19.01%), Lead and products made of Lead (65.34%), Tin

and products made of Tin (2281.60%), Nuclear Reactors (8.09%), Pumps of all types (21.72%), Industrial Machinery (10.60%), Electrical Machinery & equipments ((9.46%), Two and Three Wheelers (13.09%), Aircrafts and Spacecraft (142.21%), Railway Transport(37.65%) and Bicycle and parts(14.39%) and other miscellaneous item (18.23%). In order to boost the growth rate, the Department of Commerce take initiatives for understanding the reasons on the major engineering panels especially those whose growth is stagnant/negative and the domestic policies analysed to study intervention required for a sector. The Department interacted with the industry/ associations and the nodal Departments concerned, like the Ministry of Steel, Department of Heavy Industry, Ministry of Shipping, Ministry of Mines, etc seeking intervention for promoting exports. During 2013-14, the Department through EEPC initiated special strategies for boosting exports in the sectors of Medical Devices & Pharma Machinery and Defence & Security Products/Services. Brand Promotion Engineering goods

Campaign

the

To sustain and accelerate the growth rate of engineering exports, the Department has initiated a strategic brand promotion of engineering goods in coordination with IBEF and EEPC. Since the Engineering Sector is having a large span of products, covering nearly 40 panels, selection of one or two suitable panels is under consideration of the Department.

Annual Report 2013-14

Services Export Promotion Council

Services Export Promotion Council (SEPC) is an apex trade body set by the Ministry of Commerce & Industry, Government of India, to assist service exporters and to promote, encourage and provide guidance to the Services Export Sector. SEPC has completed 7 years of its existence and has acquired a strong membership base of more than 1900 members from 14 service sectors which come under its purview. The management of SEPC vests with the Central Governing Council.

Role of Service Sector in growth of India The services sector of India contributes more than 60% to the country’s gross domestic product (GDP). It has emerged as a prominent sector in terms of its contribution to national and states’ incomes, trade flows, FDI inflows and employment. Services exports expanded at 2.35% to $145.67 billion in 2012-13 compared to a contraction of 1.03% in merchandise exports to $306.58 billion. In 2013-14 till September, the export of Commercial Services from India has been of a value of $ 75.53 Billion which is almost 11% higher as compared to the corresponding period during the last financial year.

US$ billion

Sector

Services Exports Travel Transportation Insurance G.n.i.e* Misc. (Total) Software Services Business Services Financial Services Communication Services

2013-14 2012-13 2011-12 2010-11 2009-10 2008-09 2007-08 April-Dec (P) (P) (PR) (R) (R) (R) (P) 110.83 145.67 142.32 132.88 96.04 105.96 90.34 12.90 17.99 18.46 15.27 11.85 10.89 11.34 12.40 17.33 18.24 14.2 11.17 11.31 10.01 1.54 2.22 2.63 1.94 1.59 1.42 1.63 0.33 0.57 0.47 0.53 0.44 0.38 0.33 83.64 107.54 102.51 100.85 70.97 81.94 67.01 50.94 65.86 62.21 55.46 49.70 46.30 40.30 21.62 28.44 25.91 24.05 11.32 18.60 16.77 5.28 4.94 5.96 6.50 3.69 4.42 3.21 1.72 1.68 1.60 1.56 1.22 2.29 2.40

Performance of India’s Services Exports Membership status of SEPC As on March, 2014, SEPC has membership base of more than 1950 professionals and

Annual Report 2013-14

professionally managed corporate spread across various service sectors throughout the country. SEPC has been mandated to promote export of Services in the following sectors:

Export Promotion Measures

Table-5.18 India’s Service Exports

Table-5.19 Health care Services including services by nurses, physiotherapist and paramedical personnel

Marketing Research and public opinion polling services/management Services

Entertainment Services including audiovisual Services

Accounting/Auditing and Book Keeping Services

Educational Services

Advertising Services

Environmental Services

Consultancy Services

Architectural Services and related Services

Printing and Publishing Services

Distribution Services

Legal Services

Maritime Transport Services

Hotel and Tourism Related Services

Chapter-5

Almost 220 new members have registered themselves with SEPC during the financial year 2013-14.

•

SEPC participated in seminar on “Need for Effective International Arbitration” organized by ICC India and ICC International Court of Arbitration held on 11th September, 2013 at New Delhi.

•

SEPC participated in 4th edition of “IMTD 2013” an International Exhibition and Conference on Medical Tourism & Wellness organized by India’s High commission to Nigeria, in association with Indian Ministry of Tourism and Federation of Indian Chambers of Commerce & Industry (FICCI). The event was followed by one day B-2-B seminar held on 23rd September, 2013 at Abuja and two days of exhibition is held at Lagos on 25th & 26th, September 2013.

•

SEPC participated in conference on Dispute Resolution organized by Confederation of India Industry (CII) held on 19th October, 2013 at New Delhi.

•

SEPC participated in World Travel Market (WTM), London held on 4th November, 2013 to 7th November, 2013 at Excel, London.

Activities performed by SEPC in FY 2013-14 •

SEPC participated in Annual General Meeting and National Conference 2013 – “India of Tomorrow: Imperatives of Growth, Security and Governance, organized by Confederation of Indian Industry (CII) held on 9th April, 2013.

•

SEPC participated in as Co-sponsor in Hospitality Development Summit 2013 held on 4th and 5th July, 2013 in Mumbai at ITC Maratha Hotel

•

SEPC participated in Round Table Conclave on Practical Aspects of Sustainability Reporting held on 10.07.2013 at, New Delhi.

•

In an endeavor to update SEPC members with the developments of services sector, and to keep in touch with them, SEPC launch inaugural edition of its newsletter christened as “VISTAAR”, which means expansion. This name ties in very well with the agenda of SEPC of providing growth and expansion for members.

100

Annual Report 2013-14

•

SE PC participated in Services Conclave held on 12th -13th November, 2013 organized by Department of Commerce, Government of India in collaboration with the Confederation of Indian Industry (CII) with support from the Federation of Indian Export Organizations (FIEO) and Centre for WTO Studies (CWTOS). The said Services Conclave was organized to understand the opportunities and challenges faced by the service industry. SEPC participated as “Silver Partner” in Fourth Biennial Conference of the Asian Society for International Law (ASIL) organized by Indian Society of International Law (ISIL) held on 14-16 November, 2013 at India Habitat Centre, New Delhi.

•

SEPC participated as “Principle Partner” in Indo-US Resurgence Summit held on 02.12.2013 at New Delhi.

•

SEPC participated in Civil Aviation Development Summit 2013 (CADS 2013) held on 5th -6th December, 2013 at New Delhi.

•

SEPC participated in Seminar on Labour and Employment issues in Corporates – The Story Continues held on 17.12.2013 at PHD House, New Delhi. Participation of SEPC as Principal Sponsor of conference being jointly organized by American Bar Association (ABA) – Society of Indian Law Firms Conference (SLIF) and Services Export Promotion Council (SEPC) – Threading the Needle in US India Deals in Services: Safe Passage Through Formidable Risks scheduled to be held on February, 1315, 2014 at Hyatt Regency Hotel, New Delhi.

Annual Report 2013-14

Participation of SEPC as Gold Sponsor in National Moot Court Competition 2014 organized by School of Law, AURO University at earthspace, Hazira Road, ONGC, Surat, Gujarat from 21-23 February, 2014.

Formation of Core Groups In order to drive service sector specific agenda, SEPC constituted Core Groups for various service sectors during 2013-14. Core Groups were constituted for Healthcare Services, Hotel and Tourism related Services, Educational Services, Maritime Transport Services, Entertainment Services, Distribution Services and Consultancy Services to help identify various opportunities and challenges in target markets for boosting exports. Core Groups are expected to have an important role in identification of such challenges and opportunities for FTA’s to be entered into by the Government with India’s partner countries. Benefits of getting Registered through RCMC with SEPC: •

To find new markets for export of services.

•

Obtain assistance under various Export Promotion Schemes under the extant Foreign Trade Policy.

•

Obtain export incentives & import licenses.

•

Participate in seminars/exhibitions/ Buyer-Seller meets on national and international level.

•

Helps registered exporters get a platform for raising issues of concern with Government bodies.

101

Export Promotion Measures

•

harmaceutical Export Promotion P Council (PHARMEXCIL)

Chapter-5

Indian Pharma, a highly knowledge based industry, is growing steadily and playing a major role in the Indian economy. India’s Pharmaceuticals manufacturing picked up momentum in 1970’s from Various Drug Policies of the government emphasizing on domestic manufacturing sector where indigenous technology was encouraged. The country soon became not only self sufficient but also an exporter. India’s pharmaceutical industry is highly developed and sourced its own bulk drugs & intermediates for most of its formulations earlier but not it has to import large percentage of its API needs from China.

capabilities as measured by number of ANDA approvals, DMF filings, USFDA / UK MHRA approved manufacturing facilities / bio equivalence centers, which are considered as key indicators to measure the capabilities of any national pharma sector. India exports APIs, intermediates, Pharmaceutical formulations, bio-pharmaceuticals, Clinical Services, medical devices, surgical, herbals, Nutraceuticals, Ayurvedia, Homeo, Unani products, veterinary drugs etc. to almost 220 countries in the world. India’s role in global anti-retroviral revolution is recognized world over. HIV treatment for patients in Africa and parts of Asia was revolutionized by India in 2001 producing three-in-one HIV / AIDS treatment.

During 2013-14, exports of Drugs & Pharmaceuticals h ave occupied Fifth place in the exported principal commodity of the country accounting for 4.8% of India’s total exports. Exports of Drugs & Pharmaceuticals 2013-14 stood at USD 15.44 billion recording a CAGR 13.47 % over the corresponding period of five year.

Keeping in view the importance of the Pharma exports from India and also the commitment of the GoI to the Industry, Brand Pharma Mission was launched in March 2012.

India plays a major role in supply of API’s, and also drug intermediates, at global level. India exports bulk drugs to over 200 countries and to many of them(62), the export of Bulk Drugs / Intermediates is over USD 10 Million per annum (for each country). If the industry is able to retain its efficiency and innovativeness in terms of cost and continues to produce the quality, being produced now, India’s exports may grow considerably.

• •

India is considered as Global Pharmacy of generic drugs and has distinction of providing quality health care at affordable cost. India has proven international quality standard

102

Salient features of export trends: •

• • •

4th in the world in terms of production volumes 13th in domestic consumption 17th in terms of export value of bulk actives and dosage forms Over 50% exports of India are to highly regulated markets. USA (33%) the largest exports destination followed by EU (25%) Largest exporter of formulations in terms of volume with 14% market share.

With many products going off patent, a huge market opportunity is emerging for Indian manufacturers to tap. Further, the prospects of India as outsourcing destination for CRAMS, Clinical research, biotechnology,

Annual Report 2013-14

bio-informatics etc is emerging stronger due to skill, cost and delivery advantages. Trace & Track mechanism

Trace and track features for the time being based on GS1 global standards was decided to be mandated in 2011 as these are widely used all across the globe in tracing and tracking various products. Bar code or digital mass serialisation/unique numbers with GS1 global standards was mandated on all drugs consignments exported from India vide our Public Notice No. 59 dated 30th June, 2011. Adoption of trace and track features was prescribed in stages starting from tertiary level packaging. The mandate for tertiary level packaging came into effect from 1st October 2011 and secondary level packaging implemented from 1st January 2013. For Primary level packaging, it will be enforced in effect shortly, after being deferred from original date of 1st July, 2014. Department is also proposing to introducing a system for authentication of this solution for exports, and is constant interacting with DHFW for working out a common technology for domestic sales and exports.

Annual Report 2013-14

Campaign launched in 2011-12 and indicated the success factor of pharma industry as the basis for continued efforts to do branding. DoC is working out a common platform for DoC/ DoP and DHFW to get together and administer a pledge on “we are responsible” message for Indian Pharma products. IBEF has been authorized to work out a plan of action for kicking of a sustained campaign for a period of two years on theme basis. The website of CDSCO, the regulatory authority is also suitable being revamped for outsiders to access and register their issues with their imports. Reducing reliability on import of APIs: It is estimated that during FY-13 India has produced USD 8.8-9.0 billion worth of APIs and drug intermediates. India’s requirement of API / intermediates is around USD 12.3 – 12.5 billion. The deficit of USD 3.5 billion (12.5 – 9.0) has been substituted by imports. The trend showed between 57 – 60% of imports was from China. Such imports play a major role in our domestic health care industry and an equally important role in the exports of Bulk Drugs & Formulations. Taking such factors into consideration, on the initiative of the DoC the PMO set up a Task Force in October 2013 for finding solutions to this issue under the chairmanship of Secretary, Department of Health Research.

Complying with EU directive for APIs European Union issued a new Directive/2011/62/EC dated 8th June 2011 amending earlier Directive 2001/83/EC. The stated objective of this Directive was

103

Export Promotion Measures

To thwart attempts to malign the image of Indian Pharma and brand its products as spurious or fake. It was in this context that Department of Commerce took the initiative of proposing technological solutions for tracing and tracking the ‘Made in India’ drugs in the global market. Extensive consultations were held with the industry, concerned departments and it was decided that trace and track features need to be incorporated on all medicinal products being manufactured and exported from India as a measure to build better image and credibility of Indian pharma products.

Brand Pharma campaign:

Chapter-5

to lay down a community code relating to medicinal products for human use and to ensure that the defective products do not reach consumers. The Directive laid down a system of control over the entire supply chain for pharmaceuticals. It controls manufacture and import to marketing, wholesale and retail distribution. The said directive was made to be operational from 2nd July 2013. The new legislation came into force from 02.07.2013 that the API has been manufactured in accordance with EU-GMP standards and that the Manufacturing Facility where the API was manufactured is subject prescribed to control and enforcement of GMP standards and is equivalent to those in the EU countries.

IPHEX 2013:

A protocol for the procedure to be complied by the India API Exporters was also laid down by the CDSCO and EU expressed its appreciation of the compliance made in India in this regard in time.

Visit to Ukraine and Azerbaijan

Long term finance to pharma companies One of the recommendations made by the Task Force set up by the department to find financial solutions for the pharma sector exports, was to provide a long term special finance for pharma companies. EXIM Bank has formulated such a scheme in July 2013. The scheme proposes to assist export oriented Indian pharma companies with long term loans having extended repayment period of 10 years including moratorium of upto 36 months to help them set up USFDA complaint plants.

IPHEX – a new initiative of Pharmexcil began in 2013 at the instance of DoC. The exhibition is being promoted as the biggest networking event for pharma sector which will bring pharma and health care sector under one umbrella. This was organized by Pharmexcil during April 24 -26, 2013 in Mumbai. IPHEX 2013 provided a tremendous impetus to Pharma companies from India and many overseas buyers and regulators participated and appreciated the India Pharma supply capabilities. The event has since been made an annual exercise and is expected to many of the smaller players in the country to provide boost and highlight India’s export capabilities. Pharma export to Ukarain was going down. The Ukrainian authorities have notified that they would register medicines exported from countries which are members of PICS only. In case of medicines which are to be imported from other countries, like India (who is not a member of PICS), product registrations would be granted based on actual inspection by Ukrainian authorities and full analytical testing of imported medicines, consignment-wise. Because of this and several representatives of Indian pharma companies working in Kyiv (Ukraine) have requested Pharmexcil to take immediate measures for improving the situation. Council took up the issue and arranged for signing of MOU between Ukraine FDA and DCGI.

activities

Expo-BSM in Arogya, Sri Lanka – 17-19th August 2012

Major activities undertaken by Pharmexcil in 2012-13 for the promotion pharma exports are given below:

For the first time, Council organized Expocum-BSM in Sri Lanka along with ‘Arogya’ which was organized by Government of Sri

Major Export promotional undertaken in 2012-13:

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Lanka. Over 200 pharma buyers visited and had business discussions with the exhibitors. Just before the above event, Hon’ble Minister for Commerce & Industry, Govt. of India visited Sri Lanka, who assured the Sri Lankan Government all help from India in setting up Industrial Parks in Sri Lanka. Subsequently, a Task Force was formed, where Executive Director is one of the members. In meetings held with Ministry of Industries/Health to explore the possibilities of setting up Pharma Industrial Parks in Sri Lanka. Government of Sri Lanka is very keen to set up Industrial Parks in association with Govt. of India.

Region. In order to enhance India’s share in Algeria’s imports, Council for the first time organized a trade delegation. 56 companies participated in the event. 120 Algerian delegates attended and interacted with Indian companies. Immediately after business meetings in Algeria, Council organized Expocum-BSM in Nigeria. Over 800 Nigerian companies visited the Expo. Other initiatives Taking into account of instances of increased complaints being reported on Indian drugs exported, DoC has initiated the process for developing a protocol for receiving and acting on such complaints in a time bound manner. This is expected to discourage vested interests abroad throwing mud at the quality aspects without supporting evidence etc.

•

Special strategy for enhancing exports in medical devices initiated. Meetings held with industry members and EEPC the lead agency in export of medical devices assigned the task of working out strategy for boosting export of medical devices. EEPC has submitted report in December 2013.

•

For Vaccines, meeting held with industry members and Pharmexcil assigned the task of formulating a report for taking the matter forward.

•

Export growth to various regions has been identified and North America and Africa along with other areas are being targeted.

•

Brand India – CPhI WW and IPHEX As part of Brand India Pharma project, Council participated in CPhI Worldwide, and also held in Frankfurt in October 2013 in a big way. As a further step, Council organized

India – Asia Pacific Pharma Business Meet: 82 delegates from 68 pharma companies from 14 Asia Pacific countries attended the Business Meet and over 270 Indian delegates participated and had fruitful business discussions. Export & Patent Awards: Council conferred Export & Patent Awards to over 60 deserving member companies Trade delegation to Iran Considering the importance of export of Drugs & Pharmaceuticals to Iran to balance trade deficit between Iran and India and also special facility available to realize the export proceeds in Indian Rupees, Council organized a trade delegation to Iran to promote export of drugs in Iran. Indian embassy in Iran and local Chamber of Commerce had extended co-operation in organizing Business Meetings and meetings with Drug Regulatory authorities. BSM/Expo at Algeria & Nigeria Algeria is the 2nd largest market for drugs & pharmaceuticals after South Africa in Africa

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Export Promotion Measures

•

Indian Pharma Industry, Department of Commerce took initiatives to broaden the Committee of Administration Council. Accordingly, members of Council approved amendments to Articles, required as per the notification issued by Government. The present Committee consists of 16 elected members (small & big companies), four Government nominees from the departments of Commerce, Pharmaceuticals, Health and Science & Technology, Presidents of five major pharma associations.

its own expo IPHEX during 24-26th April 2013. With the help of Department of Commerce, over 550 prominent buyers / drug regulators / journalists from various countries were invited and organized one-to-one meeting. Over 200 Indian companies exhibited in the maiden Expo. MOUs with Pharma Associations of various countries also entered during IPHEX •

Chapter-5

•

106

WHIE, Warsaw, Poland With a view to help members to explore the markets in East Europe, Council participated in WHIE expo for the first time. Knowledge Exchange Programme As a further step to create confidence among drug regulators of various countries, a unique programme “Knowledge Exchange Programme’ was devised with the help of department of Commerce. Under this programme, Council invited drug regulators from Kenya and Egypt. During their visits, Council organized interactive meetings with Indian Drug regulators, Indian Pharma companies and also organized visits to Plants. To ensure participation of all stakeholders of Indian Pharma industry and also to make Pharmexcil a forum to represent

•

Interactions being regularly held with the Nodal Departments for Pharma like Department of Health, DCGI, DoP etc. to strengthen manufacturing and regulatory support for the industry.

•

To address specific issues of the Pharma exports, by revising the guidelines under MAI Scheme to support the industry including high regulatory costs abroad.

•

Capital subsidy funding for MSME Units for pharma units being worked out in consultation with Ministry of MSME.

•

Exporters constantly encouraged to actively participate in the prestigious trade fairs and exhibitions abroad and in India.

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Commercial Relations, Trade Agreements and International Trade Organisations

India is actively engaging in regional and bilateral negotiations with various countries/ blocs to diversify and expand the markets for exports. While the multilateral trade negotiations progressed slowly, India pursued regional and bilateral trade negotiations with vigour. In pursuance of its ‘Look East Policy’, a continuous dialogue is maintained with the ASEAN and the countries of South-East Asia at summit level engagements. Major bilateral agreements which have been concluded in the recent past include: Comprehensive Economic Partnership Agreement (CEPA) with Republic of Korea, Comprehensive Economic Cooperation Agreement (CECA) with Malaysia and the CEPA with Japan, USA remains one of India’s major trade partners, and also underway are the India-EU Broad based Trade and Investment Agreement (BTIA) negotiations etc. The main areas of trade are: I.

III. Trade with Australia and New Zealand IV. Trade with North America Free Trade Agreement (NAFTA) V. Trade with Europe VI. Trade with Commonwealth Independent States (CIS)

VII. Trade with Latin American and Caribbean Countries VIII. Trade with Countries in Sub Saharan Africa (SSA) Region IX. Trade with countries in the West Asia & North Africa (WANA) Region X. International Trade Organizations

a) The World (WTO)

b) Economic and Social Commission for Asia & the Pacific (ESCAP)

c) United Nations Conference on Trade and Development (UNCTAD)

d) Global System of Trade Preferences (GSTP)

e) Asia Pacific Trade Agreement (APTA)

f) Bay of Bengal Initiative on MultiSectoral Technical and Economic Cooperation (BIMSTEC)

g) BRICS (Brazil, Russia, China, India and South Africa) Trade

h) IBSA (India Brazil and South Africa) Trade Ministers meet in Pretoria

Trade with Asia

II. Bilateral trade relations with countries in South Asia and Iran

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Trade

Organization

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Commercial Relations, Trade Agreements and International Trade Organisations

India has always stood for an open, equitable, predictable, non-discriminatory and rule based international trading system. India is of the view that, Regional Trading Arrangements, should be ‘building blocks’ complementing the multilateral trading system.

i) Indian Ocean Rim – Association for Regional Cooperation (IOR-ARC)

j) Kimberley Process.

I. TRADE WITH ASIA (A) ASEAN Region India announced its ‘Look East Policy’ in 1991 with a view to seeking greater engagement with East Asian countries. In order to address the economic content of the ‘Look East Policy’, a continuous dialogue is maintained with ASEAN (Association of South East Asian Nations) countries viz. Brunei Darussalam,

India’s trade with ASEAN countries was US $ 74.68 billion during the year 2013-14. Major destinations for India’s exports in the region are Singapore, Indonesia, Malaysia, Vietnam, and Thailand, while the major sources of imports are Indonesia, Malaysia, Singapore, Thailand, Vietnam and Myanmar.

Table 6.1 India-ASEAN Trade data

Chapter-6

Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam. Summit level engagements, Ministerial meetings and official level discussions are held in order to fulfill the Look East Policy agenda.

Country

(US$ Million)

2012-13 Export

Import

2013-14(P) Total Trade

Export

Import

Total Trade

ASEAN BRUNEI

40.02

814.80

854.82

32.95

763.60

796.54

CAMBODIA

112.28

11.90

124.18

141.26

12.72

153.98

INDONESIA

5,331.31

14,879.49

20,210.80

4,905.76

14,909.72

19,815.48

LAO PD RP

28.91

138.64

167.56

49.89

91.20

141.10

MALAYSIA

4,444.10

9,951.06

14,395.15

4,196.32

9,211.42

13,407.75

544.66

1,412.69

1,957.35

784.58

1,392.14

2,176.72

PHILIPPINES

1,187.19

504.00

1,691.18

1,418.01

391.77

1,809.78

SINGAPORE

13,619.31

7,486.38

21,105.70

12,509.84

6,773.85

19,283.69

THAILAND

3,733.17

5,352.61

9,085.78

3,703.02

5,358.74

9,061.77

VIETNAM SOC REP

3,967.37

2,314.78

6,282.15

5,439.91

2,594.29

8,034.21

MYANMAR

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Total of ASEAN % Share in India's total India's total

33,008.31

42,866.36

10.99

8.74

75,874.67

33,181.55

41,499.46

10.61

9.22

74,681.01

300,400.68 490,736.65 791,137.33 312,610.30 450,068.43 762,678.73

The principal commodities of export include Mineral Fuels, Mineral Oils and Products of their Distillation, Meat and Edible Meat, Organic Chemicals, Ships, Boats and Floating structures, Nuclear Reactors, Boilers, Machinery and Mechanical appliances, Natural or cultured Pearls, Precious or Semiprecious stones, Iron & Steel, Fish, Cereals Vehicles other than railway or tramway and parts and accessories thereof. The principal commodities of import include Mineral Fuels, Mineral Oils and Products of their Distillation, Animal or Vegetable Fats and Oils and their cleavage products, Electrical Machinery and Equipment and Parts thereof, sound Recorders and Reproducers, Television image, Nuclear Reactors, Boilers, Machinery and Mechanical Appliances, parts thereof, Organic Chemicals, Plastics and Articles thereof, Wood & Wood Products, Ores, Slag and Ash, Rubber and Articles thereof, Ships, Boats and Floating Structures. Agreements with ASEAN India and the ASEAN signed the Agreement on Trade in Goods under the broader framework of Comprehensive Economic Cooperation Agreement (CECA) between India and the ASEAN on 13th August 2009. The Agreement has become fully operational between all the ASEAN Member States and India w.e.f 1st

Annual Report 2013-14

August, 2011. Negotiations on Agreement on Trade in Services and Agreement on Investment have also been concluded in December, 2012 and approval of the Indian Cabinet for signing of the Agreement was obtained in December, 2013 after completing all legal procedures. India-Singapore Comprehensive Economic Cooperation Agreement (CECA) The first Comprehensive Economic Cooperation Agreement (CECA) was signed with Singapore on 29th June, 2005 which became operational from 1st August, 2005. It contains 16 chapters and 7 Annexes. Tariff concessions are given on about 5000 lines at 8-digit level. The 1st Review of India-Singapore CECA was concluded on 1st October, 2007. The 2nd Review of India-Singapore CECA was launched on 11th May, 2010. The then CIM visited Singapore in May, 2013 to participate in the Investment Roundtable at Singapore. India-Malaysia Comprehensive Economic Cooperation Agreement A Comprehensive Economic Cooperation Agreement (CECA) was signed with Malaysia on 18th February 2011 which became operational from 1st July 2011. Under the CECA, India and Malaysia have offered commitments over and above the

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Commercial Relations, Trade Agreements and International Trade Organisations

Major Commodities of Export & Import â&#x20AC;&#x201C; ASEAN

commitments offered by them under ASEAN -India Agreement on Trade in Goods. Key items on which Malaysia has offered market access to India are basmati rice, mangoes, eggs, trucks, motorcycles and cotton garments, all items of considerable export interest to India. Key items of Malaysia’s interest on which India has offered market access are fruits, cocoa, palm oil products and synthetic textiles.

Chapter-6

India-Thailand Free Trade Agreement India and Thailand have signed on 09.10.2003 a Framework Agreement for establishing an India-Thailand Free Trade Agreement. The Agreement envisages negotiation for establishing an India-Thailand FTA with a view to strengthening and enhancing liberalization of trade through progressive elimination of tariffs, progressive liberalization of trade in services, establishment of an open and competitive investment regime etc. There is an Early Harvest Scheme under this Framework Agreement comprising 82 items of mutual interest for which both sides have undertaken tariff concessions during 20042006 in a phased manner. The second Protocol was signed on 25th January, 2012 to amend the Framework Agreement for establishing Free Trade Area between India and Thailand for (i) inclusion of compression-type combined refrigeratorfreezers, fitted with separate external doors, household type in the list of Early Harvest Scheme (EHS) items and to eliminate tariffs, simultaneously by both sides, on this item with effect from the date of implementation of this protocol and (ii) to amend Interim Rules of Origin for incorporating a clause of Third Party Invoicing.

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India and Thailand are presently negotiating a Comprehensive India-Thailand Free Trade Agreement. India-Indonesia Comprehensive Economic Cooperation Agreement Following the Joint Declaration of 2005 signed between Prime Minister of India and Indonesian President on establishing a New Strategic Partnership, a Joint Study Group (JSG) was set up in 2007 to examine the feasibility of a Comprehensive Economic Cooperation Agreement (CECA) between the two countries. The Group held 5 meetings and submitted its Report in September 2009. The JSG recommended launching of negotiations between the two countries on a bilateral CECA by constituting a Trade Negotiating Committee (TNC) covering substantially all trade in goods and services; investment; trade facilitation; and other areas of economic cooperation, as a ‘single undertaking’. Both Governments internally processed the Report of the JSG and agreed to accept the recommendation to commence bilateral CECA negotiations to build upon and going beyond the ASEAN-India FTA. In January 2011, both sides announced the launch of bilateral CECA negotiations. The then CIM visited on 4-6 March, 2012 to inaugurate “India Show”. Engagements with Brunei, Philippines and Viet Nam

Myanmar,

India and Brunei have a Joint Trade Committee (JTC) and it is expected that 1st meeting of the JTC will be held soon. India and Myanmar have a Joint Trade Committee (JTC) to look into the bilateral economic relations at the Minister level. Four meetings of India-Myanmar JTC have been

Annual Report 2013-14

India and Philippines have a Joint Working Group on Trade and Investment. 11th meeting of JWG was held in Manila on 29th-30th April, 2013. India and Viet Nam have set up a Joint Trade Sub-Commission and first meeting of the Sub-Commission was held in New Delhi on 18th November, 2013. Trade Promotion Activities India has an ASEAN- India Business Council (AIBC) and Joint Business Councils (JBC), with Indonesia, Malaysia, Myanmar, Thailand, Singapore, Vietnam and Philippines. Meetings of AIBC & JBCs are held between the business communities of both sides to discuss a wide range of issues of mutual interest for expansion of bilateral trade. Such meetings also act as fora for businessmen to mutually interact and explore the potential for growth in trade and investment relations. Trade promotion activities have in organized in various countries namely Viet Nam, Myanmar, Cambodia, Singapore, Indonesia, Malaysia, Thailand etc.

Annual Report 2013-14

Bilateral Trade Relations with countries in South Asia and Iran Afghanistan Table 6.2 Trade with Afghanistan

(US $ million)

Year 2009-10 2010-11 2011-12 2012-13 2013-14

Exports Imports 463.55 422.41 510.90 472.63 474.25

125.19 146.03 133.03 159.55 208.77

Total Balance Trade of Trade 588.74 338.36 568.44 276.38 643.94 377.87 632.18 313.07 683.02 265.48

Source: DGCI&S

India â&#x20AC;&#x201C; Afghanistan bilateral trade used to be regulated by a Preferential Trade Agreement signed on March 6, 2003 in New Delhi. However, Afghanistan, in its capacity as the eighth member of SAARC, is now enjoying the concessions provided by India through reduction of its sensitive list for Least Developed Countries (LDCs) from 480 to 25 tariff lines and provision of zero basic custom duty to all the items removed from the sensitive list. SAARC LDCs are allowed to export to India, almost 99.7% of the total tariff lines at zero customs duty which would help in correcting their trade balance with India. Membership of SAARC has also opened possibilities of Afghanistan becoming a trade, transportation and energy hub linking together the countries of the region from Central to South Asia. Afghanistan has ratified SATIS. As such, more opportunities will now open up for it in the fields of Investment and Services (both inbound as well as outbound). India can help through investments in value chains resulting

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Commercial Relations, Trade Agreements and International Trade Organisations

held so far. There is also an India-Myanmar Border Trade Committee, Border Haat Committee and Joint Trade and Investment Forum. Two meetings of the Border Trade Committee have been held so far (First meeting was held on 8th November 2012 at Moreh, Manipur and second meeting was held on 28th November, 2013 at Tamu, Myanmar). One meeting each of Border Haat Committee and Joint Trade and Investment Forum has been held. Meeting of Border Haat was held at Nay Pyi Taw, Myanmar on 18th October 2012 and meeting of Joint Trade and Investment Fourm was held on 7th June, 2013 in Myanmar.

Chapter-6

in improved employment generation as well as value addition. The Strategic Partnership Agreement, signed between Afghanistan & India during Afghan President HE Hamid Karzai's visit in October 2011, reinforced the strong, vibrant and multifaceted relations and formalized a framework for cooperation in various areas between the two countries: political & security cooperation; trade & economic cooperation; capacity development and education; and social, cultural, civil society & people-topeople relations. This agreement is a strong signal of our abiding commitment to peace, stability and prosperity in Afghanistan during this critical period of security and governance transition. An MOU between Afghanistan and India on the Co-operation in the field of Cement sector was signed on 12th January 2012 at Hyderabad. Further, EXIM Bank has introduced Buyers Credit facility to enable financing of infrastructure projects. Bangladesh

Table 6.3 Trade with Bangladesh

(US $ million)

Year

Exports Imports

Total Trade

Balance of Trade

2009-10 2433.77 254.66 2688.43 2179.11 2010-11 3242. 91 446.75 3689.66 2796.16 2011-12 3789.21 585.73 4374.94 3203.47 2012-13 5144.99 639.33 5784.32 4505.67 2013-14 6,051.00 460.85 6,511.85 5,590.15 Source: DGCI&S

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The Bilateral Trade Agreement between India and Bangladesh, renewed from time to time, provides for expansion of trade and economic cooperation, making mutually beneficial arrangement for the use of waterways, railways and roadways, passage of goods between two places in one country through the territory of the other, exchange of business and trade delegations and consultations to review the working of the Agreement at least once a year. A Memorandum of Understanding (MoU) on establishment of Border –Haats at Baliamari- Kalaichar (Pillar No. 1072) and Lauwaghar-Balat (Pillar No. 1213) in Meghalaya on India –Bangladesh border was signed on 23.10.2010 during the visit of Mr. Muhammad Khan, Commerce Minister, Bangladesh. Shri Anand Sharma, Commerce, Industry and Textile Minister inaugurated the Border Haat at Kalaichar on 23rd July 2011. Presently both the Border Haats are operational. In addition, four Border Hats at Kamla Sagar (Tarapura Kasba), Srinagar (Purbo Madhyagram Chhoighoria), Palbasti (West Batuli) and Kamalpur (Kurmaghat) in Tripura, on India- Bangladesh border have also been approved by both the countries. Following commodities are allowed to be traded in the Border Haats : •

vegetables, food items, fruits, spices;

•

minor forest produce e.g. bamboo, bamboo grass, and broom stick but excluding timber;

•

products of cottage industries like Gamcha, Lungi etc.;

•

small agriculture household implements e.g., dao, plough, axe, spade, chisel etc.;

Annual Report 2013-14

•

Garments, melamine products, processed food items, fruit juice, toiletries, cosmetics, plastic products, aluminium products, etc.

The then Prime Minister visited Bangladesh on September 6-7, 2011. The following bilateral documents were also signed during the visit:•

Addendum to the MoU between India and Bangladesh to Facilitate, Overland Transit Traffic between Bangladesh and Nepal,

•

MoU on Renewable Energy Cooperation,

•

MoU on Conservation of the Sundarban, Protocol on Conservation of the Royal Bengal Tiger of the Sunderban,

•

MoU on Cooperation in the field of Fisheries,

•

MoU on Mutual Broadcast of Television Programmes,

•

MoU between Jawaharlal Nehru University and Dhaka University

•

MoU on Academic Cooperation between National Institute of Fashion Technology (NIFT), India and BGMEA Institute of Fashion and Technology (BIFT), Bangladesh.

Annual Report 2013-14

To tide over the problem of congestion of trucks being faced by the exporters from both sides at Petrapole – Benapole, India and Bangladesh agreed to increase the working hours from 7.00 am to 6.30 pm (April-Sept.) / 6.00 pm (Oct. – March) and the LCS will function on all 7 days of the week. Notification regarding permission for import of motor cycles from Bangladesh through LCSs at Agartala and Petrapole has been issued by DGFT on 23.10.2013. The request of Bangladesh Government for allowing import of Soap through all Land Customs Stations in India has also been resolved. Under SAFTA, India has given generous market access for Bangladesh exports at zero

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Commercial Relations, Trade Agreements and International Trade Organisations

The commodities are allowed to be exchanged in the designated Border Haats in local currency and/or barter basis. Each individual is allowed to purchase only as much of the commodities which are reasonable for bonafide personal/family consumption. Estimated value of such purchases shall not be more than respective local currency equivalent of US$100 for any particular day.

Both sides are working on several projects to improve trade infrastructure and connectivity. Department of Border Management, Ministry of Home Affairs is developing 7 Integrated Check Posts (ICPs) on India – Bangladesh Border viz; Petrapole, Agartala, Dawki, Hili, Chandrabangha, Sutarkhandi and Kawarpuchiah. Further, infrastructure at 8 Land Custom Stations (LCSs), namely Borosora, Dalu, Ghasuapara, Mahadipur, Hilli, Phulbari, Srimantpur and Gojadanga along the Indo – Bangladesh border is being developed under the ASIDE scheme of Department of Commerce. The work at Phulbari, LCS has been completed. The total projected cost of all the ICPs and LCSs being developed is 125 US$ million. The ICP at Agartala was inaugurated on 17th November, 2013. The ICP at Petrapole is expected to be completed by December, 2014.

basic customs duty for all items except liquor and tobacco. India offered Buyers’ Credit to Bangladesh Government agencies for large project exports, especially in the infrastructure sector such as roads, bridges, railways, power lines, sewerage plants, water treatment plants and housing. The credit spanning over a period of 5-8 years will be provided under National Export Insurance Account (NEIA) through Exim Bank. Bhutan Table 6.4 Trade with Bhutan

Chapter-6

(US$mn)

Year

Exports Imports

Total Trade

Balance of Trade

2009-10 118.86

153.11

271.97

-34.25

2010-11 176.03

201.57

377.60

-25.54

2011-12 229.86

202.55

432.41

27.30

2012-13 233.22

164.00

397.22

69.22

2013-14 300.36

151.04

451.40

149.33

Source: DGCI&S

The current Trade Agreement between India and Bhutan, namely Agreement on Trade, Commerce and Transit was signed in New Delhi on 28th July, 2006 for a period of ten years with effect from 29th July, 2006. Under this Agreement, India also provides transit facilities to landlocked Bhutan to facilitate its trade with third countries and movement of goods from one part of Bhutan to another through Indian Territory.

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Most important requirements of Bhutan are mainly met by imports from India. DGFT has exempted Bhutan from export ban on the following items, with annual limits indicated against each :(i) Milk Power

: 1,600 Metric Tonnes

(ii) Wheat

: 24,000 Metric Tonnes

(iii) Edible Oil

: 2,400 Metric Tonnes

(iv) Pulses

: 1,200 Metric Tonnes

(v) Non-Basmati Rice : 21,200 Metric Tonnes Bhutan’s request for use of Ghasuapara and Dalu Land Customs Stations (LCSs) in Meghalaya on Indo-Bangladesh border as on exit/entry points for Bhutan’s trade with Bangladesh was formalised by a Letter of Exchange (LOE) w.e.f 1st February, 2012. A Sub-group has also been constituted for identifying the points of trade interest to Bhutan and also suggesting the infrastructure required at these places. Limit of Quota restrictions for import of marble from Bhutan has been raised from 1847 MT to 5882 MT vide DGFT Notification No. 69 (RE-2010)/2009-14 dated 1.9.2011. The present enhancement may cover their production capacity. Bhutan’s request for Duty Free Access at international airport in India has been acceded to vide notification no. 77/2011Customs (NT) dated 14.11.2011.

Annual Report 2013-14

IRAN

Table 6.5 Trade with Iran

(US $ Million)

Year

Export Import

Total Trade

Balance of Trade

1853.17 11540.85 13394.02

(-) 9687.68

2010- 11

2492.95 10928.21 13421.17

(-) 8435.26

2011-12

2411.36 13720.97 16132.33 (-) 11309.62

2012-13

3351.21 11594.46 14945.67

(-) 8243.25

2013-14 4,925.20 10,332.08 15,257.28 (-) 5,406.88

Source: DGCI&S

Iran has a strategically important location bordering Pakistan and Afghanistan and sitting atop the Persian Gulf and Hormuz Straits. Its rich deposits of oil and gas as well as other mineral resources, bolsters its important regional role. India’s core interest in the bilateral relationship with Iran includes its need for steady and undisrupted supply of crude oil and gas as well as acquisition of oil/ gas fields for its energy security. Iran is also crucial for connectivity to Afghanistan and Central Asia. Iran is not a member of WTO, as on date. It is trying to enter into a number of FTAs and Preferential Trade Agreements (PTAs) with countries located in Asia, Africa and Europe. In view of the sanctions against Iran, Rupee payment arrangement has been put in place to (i) Ease payment in respect of exports of oil and (ii) to help facilitate payment to exporters in Indian rupees. This mechanism is expected to enhance India’s export prospects to Iran for items such as agricultural commodities (Rice, Wheat, Sugar, Oilmeals

Annual Report 2013-14

To smoothen the payments through the Special Rupee Payment mechanism, ECGC enhanced the guarantee cover from Rs 300 crores to Rs 600 crores within the Maximum Liability of the ECIB – WTPS issued to UCO bank. Government of India has issued Notification No.79 (Re 2013)/2009-2014 dated 30th April, 2014 which states that re-exports of food, medicine and medical equipments to Iran will not be subject to any value addition requirement. Goods imported against freely convertible currencies and re-exported to Iran against rupee payment shall not be eligible for any export exemption. MALDIVES

Table 6.6 Trade with Maldives

(US $ million)

Year

Exports Imports

Total Trade

Balance of Trade

2009-10

79.86

3.63

83.49

76.23

2010-11

100.14

31.38

131.52

68.77

2011-12

124.60

18.91

143.51

105.69

2012-13

122.36

6.29

128.65

116.08

2013-14

107.70

3.97

111.67

103.73

Source: DGCI&S

The bilateral trade between India and Maldives is regulated by a Trade Agreement between the two countries. The Agreement came into force on the 31st March, 1981.

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Commercial Relations, Trade Agreements and International Trade Organisations

2009 -10

and cattlefeed), processed meat, gems & jewellery, engineering products, automobile components, pharmaceutical products and others.

Chapter-6

Under the provisions of the Agreement, Maldives submits its requirement of essential commodities for the upcoming fiscal year April-March by the end of November of the preceding year and the GOI will process the matter and allocate quotas by the end of December. The commodities supplied to Maldives are Eggs, Potatoes, Onions, Rice, Wheat Flour, Sugar, Stone Aggregates, River Sand and Dhal. Government of India is required to make specific quota allocations in respect of each item with due regard to the supply availability and the overall requirement of the Govt. of Maldives. To fulfil this international commitment, these commodities are being released on year to year basis (fiscal year). The supply of above essential commodities to Maldives has been authorized upto the year 2014-17. Nepal

Table 6.7 Trade with Nepal

(US $ million)

Year

Exports Imports

Total Trade

Balance of Trade

2009-10 1533.31 452.61 1985.92 1080.70 2010-11 2168.06 513.40 2681.47 1654.66 2011-12 2721.57 549.89 3271.45 2171.68 2012-13 3088.84 543.10 3631.94 2545.73 2013-14 3,575.42 528.39 4,103.81 3,047.03 Source: DGCI&S

The Treaty of Trade between India and Nepal was renewed on 27th October, 2009. The Treaty aims at improving bilateral trade between the two countries by increasing the

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mutually agreed points of trade, expansion in the list of items included for preferential trade, simplification of trade procedures, improving Nepalese supply capacities, provision of two level institutional mechanisms for problem resolution etc. The Treaty has been renewed for a further period of seven years upto 26th October, 2016. An Inter-Governmental Committee (IGC) meeting on Trade, Transit and Cooperation to control unauthorised trade has been scheduled to be held on 21 â&#x20AC;&#x201C; 22 December, 2013 at Kathmandu, Nepal where both sides discussed various bilateral trade related issues. Nepalese request for waiver of Additional Duty of Customs (ADC) on all export items to India was considered vide Notification No.107/2011-Customs dated 5.12.2011. Provisions of Treaty of Trade signed in October 2009 for replacement of Duty Refund Procedure (DRP) have been implemented vide Notifications 24-29/2011-Central Excise (N.T.) dated 5.12.2011. A Double Taxation Avoidance Agreement (DTAA) with Nepal was signed on 27th November 2011 which will help exporters and investors of both the countries in improving mutual business engagements. A Bilateral investment protection and promotion agreement signed on 21st October, 2011 will help in resolving the problems being faced by investors of both the countries. India is offering Buyersâ&#x20AC;&#x2122; Credit to Nepalese Government agencies for large project exports, especially in the infrastructure sector such as roads, bridges, railways, power lines, sewerage plants, water treatment plants

Annual Report 2013-14

and housing from India. The credit is being provided under National Export Insurance Account (NEIA) through EXIM Bank for a maximum period of 5 -8 years. Pakistan

(US $ million)

Year

Exports Imports

Total Trade

Balance of Trade

2009-10 1573.32 275.94 1849.26 1297.38 2010-11 2039.61 332.51 2372.12 1707.09 2011-12 1541.57 361.93 1903.50 1179.65 2012-13 2064.89 541.87 2606.75 1523.02 2013-14 2,275.02 426.88 2,701.90 1,848.14 Source: DGCI&S

India’s relations with Pakistan, inspite of many contentious issues, have made major strides in reducing the trust deficit over the past few years. India and Pakistan have no formal bilateral trade agreement. India granted the MFN status to Pakistan way back in 1995-96 but Pakistan is yet to reciprocate. The Composite Dialogue between India and Pakistan, which started in 1998, was continued through 4 rounds of talks by Commerce Secretaries of both countries on “Commercial & Economic Cooperation” during the period 2004-2007. Bilateral dialogue between the two countries resumed after the two Prime Ministers met on the sidelines of SAARC Summit in Thimphu in April 2010 and reaffirmed the importance of carrying forward the dialogue process with

Annual Report 2013-14

Bilateral trade dialogue with Pakistan was re-initiated with the 5th round of IndiaPakistan Commerce Secretary level talks on Commercial and Economic Co-operation in April 2011. This was followed by further rounds of talks held in November 2011 at Delhi and September, 2012 at Islamabad. Three Ministerial level dialogues were also held in September 2011, February 2012 and April 2012. The first ever bilateral visit of Commerce Minister of India to Pakistan was undertaken in February 2012. The Commerce Ministers of India and Pakistan along with their official delegations had a bilateral meeting on February 15, 2012. It was agreed that Pakistan will move from a ‘Positive List’ to a small ‘Negative List’ by February 2012. The Negative List of 1209 items was formally notified by the Government of Pakistan on 20th March, 2012. The major protected sectors in the list are Auto, Steel, Paper & Boards, Plastics, Textiles, Electrical Machinery, Pharma, Machinery, Chemicals and Sports. It was expected that the complete phasing out of the Negative List before the end of 2012, would complete the transition to Most Favoured Nation (MFN) status for India, by Pakistan. But this timeline has not been adhered to by the Pakistan side. . Department of Industrial Policy and Promotion (DIPP) GOI vide Press Note No. 3(2012 Series) dated 1st August, 2012 reviewed the FDI Policy and permitted investments from Pakistan in sectors/activities other than defence, space and atomic energy. Subsequently, RBI has notified suitable changes in FEMA Regulations.

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Table 6.8 Trade with Pakistan

a view to resolving peacefully all outstanding issues.

Chapter-6

Improvement in the bilateral trade is expected with the implementation of the steps to further liberalize and normalize trade as agreed between the two countries. India reduced its Sensitive List in September 2012 for NLDCs (Pakistan & Sri Lanka) under SAFTA by 264 tariff lines (consisting of Textile -155, Agriculture-106 and Petroleum-3) from 878 tariff lines to 614 tariff lines. India has brought down peak tariff to 5% for 88% of Tariff lines for NLDCs (Pakistan & Sri Lanka). Pakistan has given preferential access for 82% of tariff lines. Benefit to India partially blocked through its Negative List of 1209 tariff lines (23% of total tariff lines at 6 digit level).

the reduced Sensitive List, Pakistan, after seeking approval of the Cabinet, will also simultaneously notify its dates of transition to bring down its SAFTA sensitive list to a maximum of 100 tariff lines at 6 digit level within next 5 years. The reductions shall be notified by Pakistan in equal measure for each year so as to complete reduction to 100 lines before end of 2017. Thus, before the end of 2017, both India and Pakistan would have no more than 100 (6 digit) tariff lines in their respective SAFTA sensitive lists. Before the end of year 2020, except for this small number of tariff lines under respective SAFTA sensitive lists, the peak tariff rate for all other tariff lines would not be more than 5%.

During the 7th Commerce Secretary level talks in September 2012 in Islamabad, it was decided that to further deepen the preferential arrangements under SAFTA and to provide level playing field to Pakistani exporters in comparison to concessions allowed by India under SAFTA to rest of the countries in the SAARC region, both sides would develop a long term plan. It was noted that Pakistan now has a total of 936 tariff lines at 6 digit under its SAFTA Sensitive List, as against 614 tariff lines at 6 digit of India.

The agreements on redressal of trade grievances, bilateral cooperation and mutual assistance in customs related matters were signed during the 7th round of India-Pakistan talks on Commercial and Economic Cooperation held during 20-21 September 2012 at Islamabad.

It was agreed that after Pakistan has notified the removal of all restrictions on trade by Wagah-Attari land route, the Indian side would bring down its SAFTA sensitive list by 30% before December, 2012 keeping in view Pakistanâ&#x20AC;&#x2122;s export interests. Pakistan would transition fully to MFN (non discriminatory) status for India by December 2012 as agreed earlier. India would thereafter bring down its SAFTA Sensitive List to 100 tariff lines at 6 digit level by April, 2013. As India notifies

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RBI and State Bank of Pakistan are working towards the goal of creating direct banking channels between the two countries. Interior Ministry of Pakistan and Indiaâ&#x20AC;&#x2122;s Ministry of Home Affairs had reached a broad understanding to put in place reciprocal arrangements which shall substantially liberalise the visa provisions for business persons. This agreement signed in September 2012 was finally announced for implementation in December 2012. Environment for trade is expected to improve with the signing of this agreement. Government of Pakistan has not been able to adhere to its commitments of removing

Annual Report 2013-14

Sri Lanka

Table 6.9 Trade with Sri Lanka

(US$mn)

Year

Exports Imports

Total Trade

Balance of Trade

2009-10 2188.01 392.19 2580.20 1795.82 2010-11 3510.06 501.73 4011.78 3008.33 2011-12 4378.79 578.04 4956.83 3800.76 2012-13 3983.87 625.81 4609.68 3358.06 2013-14 4,549.14 677.38 5,226.52 3,871.75 Source: DGCI&S

Sri Lanka has traditionally been an important export market for India. India-Sri Lanka Free Trade Agreement (ISFTA) was signed on 28th December, 1998, which has been in operation since 1st March, 2000. Under this Agreement, both countries agreed to phase out trade tariffs from each other within a fixed time frame except for those items in the Negative List of each other. Commerce, Industry & Textile Minister (CITM) visited Sri Lanka in August 2012, for inauguration of the â&#x20AC;&#x2DC;India Showâ&#x20AC;&#x2122; in Colombo and the visit has further enhanced the level of bilateral cooperation between the two

Annual Report 2013-14

countries. New initiatives like setting up of a Special Economic Zone (SEZ) focusing on engineering products and auto components, establishment of a manufacturing hub for pharmaceuticals etc. had been taken which need to be progressed. As decided during the visit of the CITM, a Joint Task Force (JTF), has been set up and entrusted with the task of working out the detailed plan of action for establishing the SEZ. The first meeting of the JTF was held on 24.6.2013 during CS level delegation visit to Sri Lanka on 24-25 June 2013. As announced by CITM, a Textiles delegation led by Secretary, Textiles, Government of India visited Sri Lanka in September 2012 to discuss the scope of enhancing cooperation among the two countries. Both sides agreed to constitute a Joint Working Group to look into the issues of (a) restructuring/ revival of textiles industry; (b) Trade relations; (c) skill development; (d) fashion technologies; (e) cluster development and (f) processing sector technologies. An MOU between India and Sri Lanka envisaging cooperation in the Textiles sector has been formally signed. As a follow up of the commitment made by CITM, a Pharmaceutical delegation from India visited Sri Lanka from 15-18 August, 2012 to explore the possibility of cooperation in the pharmaceutical sector, including through setting up of manufacturing facilities in Sri Lanka. GoSL assured all possible assistance including extending incentives etc. for investing in the pharma zone by Indian companies.

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the trade restrictions on the land route, as well as the granting of MFN status to India as agreed during the 7th CS level talks held in September 2012 at Islamabad. The progress made in improving bilateral trade through the agreement on the roadmap for Preferential Trading Arrangement under the SAFTA process, hinges on fulfillment of commitments made by the Pakistan side.

SAARC

Table 6.10 India’s Trade with SAARC countries

US $ Millions Country

2011-2012 Exports

Imports

2012-2013

Total Trade

Trd.Bal.

Exports

Imports

% Growth

Total Trade

Trd.Bal.

Exports Imports

South Asia AFGHANISTAN

510.90

BANGLADESH

643.94

377.87

472.63

159.55

632.18

313.07

-7.49

19.94

3,789.21

585.73

4,374.94

3,203.47

5,144.99

639.33

5,784.32

4,505.67

35.78

9.15

BHUTAN

229.86

202.55

432.41

27.30

233.22

164.00

397.22

69.22

1.46

-19.03

MALDIVES

124.60

18.91

143.51

105.69

122.36

6.29

128.65

116.08

-1.79

-66.76

NEPAL

2,721.57

549.89

3,271.45

2,171.68

3,088.84

543.10

3,631.94

2,545.73

13.49

-1.23

PAKISTAN

1,541.57

361.93

1,903.50

1,179.65

2,064.89

541.87

2,606.75

1,523.02

33.95

49.72

578.04

4,956.83

3,800.76

3,983.87

625.81

4,609.68

3,358.06

-9.02

8.26

2,679.95 17,790.74 12,430.85

13.64

10.28

-1.82

0.29

SRI LANKA Total of South Asia

4,378.79 13,296.50

% Share in India's total

Chapter-6

133.03

India's total

4.35

2,430.08 15,726.58 10,866.42 15,110.80 0.50

5.03

0.55

305,963.92 489,319.49 795,283.41 -183,355.57 300,400.68 490,736.65 791,137.33 -190,335.97

Source: DGCIS

Table 6.11 India’s trade with SAARC countries in current financial year as compared to same period in 2012-13 is:

US $ Millions

Country

2012-2013

2013-2014(P)

% Growth

Exports Imports Trd.Bal. Exports Imports Trd.Bal. Exports Imports South Asia AFGHANISTAN TIS

473

160

313

474

209

265

0.34

30.84

BANGLADESH PR

5145

639

4506

6051

461

5590

17.61

-27.9

BHUTAN

233

164

300

151

149

28.79

-7.91

MALDIVES

122

116

108

104

-11.98

-36.8

NEPAL

3089

543

2546

3575

528

3047

15.75

-2.71

PAKISTAN IR

2065

542

1523

2275

427

1848

10.18

-21.2

SRI LANKA DSR

3984

626

3358

4549

677

3872

14.19

8.24

15111

2680

12431

17333

2457

14876

14.71

-8.31

5.03

0.55

5.54

0.55 450068 -137458

4.06

-8.29

Total of South Asia % Share in India's total India's total

300401

490737 -190336

312610

Source: DGCIS

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Annual Report 2013-14

Highlights of Trade with SAARC During 2013-14, Bangladesh was the largest trading partner of India in SAARC region followed by Sri Lanka.

During 2013-14, the highest growth for exports was recorded for Bhutan at 29% followed by Bangladesh at 18%.

During 2013-14, India has recorded a negative growth rate of exports wtih Maldives (-12%).

India runs a trade surplus with all its South Asian trading partners

South Asian Association for Regional Cooperation (SAARC) with India, Bangladesh, Bhutan, Maldives, Nepal, Pakistan and Sri Lanka as members was established at the first SAARC Summit held on 4-8 December 1985. Afghanistan became its eighth member during the 14th SAARC Summit held in April 2007. India, Pakistan and Sri Lanka are categorized as Non-Least Developed Contracting States (NLDCSs) and Afghanistan, Bangladesh, Bhutan, Maldives and Nepal are categorized as Least Developed Contracting States (LDCs). The SAARC Preferential Trading Arrangement (SAPTA) provided a framework for exchange of tariff concessions and also for liberalization in para-tariff and non-tariff measures with a view to promoting trade and economic cooperation among the SAARC member countries. The Agreement on South Asian Free Trade Area (SAFTA) was signed during the Twelfth SAARC Summit held at Islamabad in January 2004 which came into force from 1st January 2006. SAFTA, inter alia, prescribes a phased Tariff Liberalization Programme (TLP) according to which all the member states would reduce their tariffs, at the MFN applied rate existing as on 1st January 2006, to zero to five percent within ten years of the

Annual Report 2013-14

agreement coming into force. This TLP would cover all tariff lines except those items kept in the Sensitive List by each country. With the SAFTA Agreement coming into force, there would be no more negotiations under SAPTA. During the fourteenth SAARC Summit held in New Delhi on 3-4 April 2007 India, inter alia, unilaterally announced that India would allow the LDCs of SAARC duty free access to its markets. In pursuance of this, India has reduced its sensitive list for LDCs from 480 to 25 items and zero custom duty has been given to all the items removed from the sensitive list vide Notification No.99/2011-Customs dated 9.11.2011. India has thus allowed zero duty access for the SAARC LDCs for almost 99.7% of the total tariff lines. This measure is expected to help in correction of the trade deficit with India of the SAARC LDCs. Agreement on Multilateral Arrangement on Recognition of Conformity Assessment and the SAARC Agreement on Implementation of Regional Standards were signed at during the 17th SAARC Summit at Maldives in November 6-11, 2011. This would promote the mutual recognition of activities of conformity assessment, namely, inspection, testing

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Commercial Relations, Trade Agreements and International Trade Organisations

Chapter-6

and certification. The SAARC Agreement on Implementation of Regional Standards would provide a framework as well as the guiding principles for implementation of SAARC standards. These understandings shall pave the way for smoother flow of trade between SAARC members. Agreement on establishing the SAARC Regional Seed Bank signed during the 17th SAARC Summit meeting will provide regional support to national seed security efforts, address regional seed shortages through collective actions, promote increase of Seed Replacement Rate and act as a regional seed security reserve for the Member States. The Agreement will foster inter-country partnerships in attaining seed security as a means to ensure food security, particularly reducing possible adverse effects of natural calamities. SAFTA Ministerial Council (SMC) consisting of Ministers of Commerce/Trade of the Member States is the highest decision making body of SAFTA and the SMC is supported by a Committee of Experts (COE) with nominees from member states. The Eighth meeting of the SMC and Ninth meeting of COE are scheduled to be held in April, 2014 at Thimphu, Bhutan.

India has developed a web based portal providing detailed information on current and updated import policies in respect of various products imported into India has since been developed and provides a one stop knowledge base for exporters in the SAARC region exporting different products to India. The portal also called the Compendium is freely accessible at the site address given below:url:http://compendium.iift.ac.in/index.asp The SAARC Agreement on Trade in Services (SATIS) was signed in the sixteenth SAARC meeting held in April 2010 at Thimpu in Bhutan. This marks the first step in expanding the scope of the SAFTA agreement which is essentially a goods agreement at present. The Ninth meeting of Expert Group on SATIS was held on February 13, 2012 at Islamabad in Pakistan. Negotiations on schedules of specific commitment, including Initial Request List are being held by the Expert Group on SATIS. Trade with Australia and New Zealand Oceania consists of Australia, New Zealand, Pacific Small Islands Developing States (PSIDS) e.g. Fiji, Papua New Guinea(PNG), Tongo, Kiribati, Tuvalu, Solomon Islands, Nauru, Vanuatu etc States.

Table 6.12 Trade with Australia, New Zealand, Fiji and Papua New Guinea (PNG

US$ Million

COUNTRY

AUSTRALIA NEW ZEALAND

122

2012-13

2013-14

% Growth

Export

Import

Trade Balance

Export

Import

Trade Balance

Export

Import

2351

13089

-10738

2307

9995

-7688

-1.9

-23.64

303

698

-396

281

616

-336

-7.25

-11.75

Annual Report 2013-14

FIJI ISLAND

19.56

37.18

PAPUA NEW GUINEA (PNG)

105

-75

179

-135

48.81

70.84

2755

13998

-11125

2725

10972

-8246

-1.07

-21.62

TOTAL (Source: DGCI&S)

Rank

AUSTRALIA Export

NEW ZEALAND Import

Export

Import

Gems & Jewellery

Coal, Coke & Briquittes etc.

Drugs, Wood and Wood Pharmaceuticals and Products Fine Chemicals

Transport Equipments

Metalifers Ores & Metal Scrap

Machinery & Instruments

Coal, Coke & Briquittes etc.

Drugs, Gold Pharmaceuticals and Fine Chemicals

Gems & Jewellery

Metalifers Ores & Metal Scrap

Machinery & Instruments

Non-ferrous Metals

Plastic & Linoleum Products

Wool, Raw

Petroleum: Crude & Products

Petroleum, Crude & Products

Transport Equipments

Fruits & Nuts excluding Cashew Nuts

Manufactures of Metals

Pulses

Manufactures of Metals

Newsprint

Rmg Cotton Including Wool, Raw Accessories

Cotton Yarn, fabrics, Madeups etc

Machinery Except Electrical & Electronic

Inorganic/Organic/ Agro Chemicals

Fruits & Nuts Excluding Cashew Nuts

Inorganic/Organic/ Agro Chemicals

Paper Board & Manufactures

Cotton Yarn, fabrics, Madeups etc

Dyeing, Tanning, Colouring Materials

Rmg Cotton Including Pulp and Accessories Waste Paper

10 Plastic & Linoleum Products

Machinery Except Manmade Yarn, Electrical & Electronic fabrics, Madeups

Leather

(Source: DGCI&S)

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Commercial Relations, Trade Agreements and International Trade Organisations

Table 6.13 Top Ten Commodities of Export and Import in Indiaâ&#x20AC;&#x2122;s Trade with Australia and New Zealand in 2013-14

Chapter-6

FIJI

PAPUA NEW GUIENA Rank Export Import Export Import 1 Machinery And Gold Drugs, Metalifers Ores & Instruments Pharmaceuticals & Metal Scrap Fine Chemicals 2 Manmade Yarn, Metalifers Ores & Machinery And Wood And Wood Fabrics, Madeups Metal Scrap Instruments Products 3 Gems & Jewellery Machinery Except Manufactures Of Machinery Except Electrical & Electronic Metals Electrical & Electronic 4 Plastic & Linoleum Electronic Goods Plastic & Linoleum Professional Products Products Instruments etc Except Electronic 5 Rmg Manmade Fibres Dyeing, Tanning, Electronic Goods Colouring Materials 6 Drugs, Footwear Of Rubber/ Pharmaceuticals & Canvas Etc. Fine Chemicals 7 Rmg Cotton Including Paper/Wood Products Accessories 8 Manufactures Of Rubber Mfd. Products Metals Except Footwear 9 Marine Products Transport Equipments 10 Cosmetics/Toiletries Cotton Yarn, Fabrics, Etc. Madeups etc (Source: DGCI&S)

India-Australia CECA negotiations: Based on the recommendations of the Joint Study Group (JSG) in 2010 and subsequent approval of the Trade and Economic Relations Committee (TERC) headed by the then Prime Minister of India on 29.4.2011, India is negotiating with Australia a Comprehensive Economic Cooperation Agreement (CECA) covering trade in goods, services, investment and related issues. Five rounds of negotiations have been held so far. The 1st round held in July, 2011 and the last i.e. 5th round held on 20-21st May, 2013 in Canberra (Australia). The 6th Round is slated in India in 2014.

124

India Australia Joint Ministerial Commission (JMC) Meeting The 14th India-Australia Joint Ministerial Commission (JMC) Meeting was held in New Delhi on 29th January, 2013 co-chaired by Minister of Commerce & Industry, India and Australian Minister for Trade and Competitiveness. The issues discussed during JMC meeting were diverse and wide e.g. institutional framework and review of bilateral trade and investment, Australia and Indiaâ&#x20AC;&#x2122;s mutual interests in the effectiveness of global and regional economic institutions, strengthening of the East Asia Summit, G-20,

Annual Report 2013-14

30th July, 2013 in Wellington (New Zealand) followed by an intersessional discussion on 9-10th December 2013 at New Delhi. The 10th Round is slated in India in 2014.

India-Australia CEO Forum

India Fiji Joint Trade Committee (JTC)

Australia-India CEO Forum of business groups have been constituted to take forward the agenda of equitable and balanced exchange of goods and services along with investment in both the countries. So far, three meetings of CEO Forums have been held.

India and Fiji inked an Memorandum of Understanding (MoU) in October, 2005 for establishment of Joint Trade Committee (JTC). The JTC shall be composed of Joint Secretaries / CEOs and respective Governments decide the composition of the delegation. The first meeting of JTC is expected to be held in India and convenience of both sides is being worked out.

The CEOs Forum reviewed the progress that the forum has made since the last meeting and discussed ways to strengthen India Australia economic relations especially in the focus sectors viz. Minerals and resources, Infrastructure and financial services,. Agriculture business, ICT,Education and training including vocational training. India-New Zealand CECA negotiations: Based on the recommendations of the Joint Study Group (JSG) and subsequent approval of Trade and Economic Relations Committee (TERC) headed by the then Prime Minister of India on 21.1.2010, India is negotiating with New Zealand a Comprehensive Economic Cooperation Agreement (CECA) covering trade in goods, services, investment and related issues. Nine rounds of negotiations have been held so far. The 1st round held in April, 2010 and last round i.e. 9th round on 29-

II North East Asia Indiaâ&#x20AC;&#x2122;s trade with the North East Asian region comprising China, Japan, Republic of Korea, Hong Kong China, Taiwan China, Democratic People Republic of Korea, Macao and Mongolia stood at US$ 125.11 billion during 2013-14, which is a decrease of 3.27 % over the previous year. Exports to the North East Asia region were of the order of US$ 40.81 billion during 2013-14, registering a growth of 3.48% over the last year. Imports from the region decreased by 6.23 % to US$ 84.30 billion during 2013-14. Indiaâ&#x20AC;&#x2122;s major trading partners in the region are China, Hong Kong, Japan and Republic of Korea. Trade with North East Asian countries from 2008-09 to 2013-14* is given in Table as under;

Table 6.14 Trade with North East Asian Countries

(US$ million)

Year 2008-09 2009-10

Annual Report 2013-14

Exports 25449.19 28904.56

Imports 58455.94 53491.57

Total Trade 83905.13 82396.13

Balance of Trade (-) 33006.74 (-) 24587.01

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Commercial Relations, Trade Agreements and International Trade Organisations

WTO, IOR-ARC, Comprehensive Economic Cooperation Agreement (CECA) etc. 15th India Australia JMC is expected to be held in 2014 in Australia.

Year

Exports

Imports

Total Trade

Balance of Trade

2010-11

37315.76

76109.73

113425.50

(-) 38793.97

2011-12

45349.59

94883.00

140232.59

(-) 49533.41

2012-13

39437.08

89907.33

129344.40

(-) 50470.25

2013-14*

40,811.09

84,302.43

125,113.51

(-) 43,491.34

Chapter-6

(* Provisional) (Source â&#x20AC;&#x201C; DGCI&S)

Major items of export to the region include gems and jewellery, petroleum (crude and products), cotton yarn, fabrics, made-ups, non-ferrous metals, iron ore, machinery & instruments, other ores and minerals, ferro alloys plastic & linoleum products, and Dyes/intermediates etc. Major items of import include electronic goods, machinery, organic chemicals, iron and steel, transport equipment, other commodities, project goods, pearls precious and semi-precious stones, fertilizers and artificial resins, plastic materials, etc. China and India have agreed to endeavour to raise the volume of bilateral trade to US$ 100 billion by 2015. Trade with China crossed US$ 65 billion during the year 2013-14. Major items of Indian exports to China include Cotton raw incld. waste, non-ferrous metals, iron ore, cotton yarn, other ores and minerals, plastic & linoleum products, spices, Dyes/ intermediates, machinery & instruments, petroleum (crude & products). Major imports from China include electronic goods, machinery, organic chemicals, project goods, fertilizers, iron and steel, electric machinery except electronic, transport equipments and manufactures of metals. Indian exports to Japan registered a decline of 3.62 %, while imports from the country

126

registered a growth of 3.74% during 201213 over the previous year. Major items of export to Japan include petroleum (crude & products), marine products, gems & Jewellery, oil meals, machinery & instruments, ferro alloys, iron ore, inorganic/organic/ agrochemicals, transport equipments, drugs/ pharmaceuticals & fine chemicals. Major items of import from Japan are machinery except electrical & electronic, transport equipments, iron & steel, electronic goods, machine tools, manufactures of metals, project goods and organic chemicals. A bilateral trade target of US$ 25 billion by 2014 has been fixed. It is expected that after coming into force of CEPA from 1st August 2011, this target will be achieved during the stipulated period. Exports to Hong Kong accounted for 4.09 % of Indiaâ&#x20AC;&#x2122;s overall exports during 2012-13. During 2012-13 Indiaâ&#x20AC;&#x2122;s exports to Hong Kong amounted to US$ 12.27 billion registering a decline of 5.05 % over the last year. Imports from Hong Kong in 2012-13 amounted to US$ 7.90 billion, recording a decline of 24.09% over the previous year. The major items of exports to Hong Kong include gems and jewellery, finished leather, electronic goods, cotton yarn fabrics made ups, petroleum (crude and products), marine products, machinery and instruments, cotton raw incld. Waste, transport equipments. The share of Gems

Annual Report 2013-14

and Jewellery in India’s exports to Hong Kong is more than 80%. The major items of imports are pearls, precious and semi-precious stones, gold, electronic goods, silver, machinery.

Trade Negotiations India - Korea CEPA A Comprehensive Economic Partnership Agreement (CEPA) between India and Republic of Korea was signed on 7th August 2009. The CEPA came into force from 1st January, 2010. The first meeting of the Joint Committee at Ministerial level to review the implementation of CEPA was held on 20th January 2011 in New Delhi. The second meeting of JS/DG Level to review the implementation of CEPA was held on 29th September 2011 in Seoul. First meeting of India-Korea Ad-hoc Working Group at JS/DG level for up gradation of IndiaKorea CEPA was held on 8th May, 2012 in New Delhi. The third meeting of JS/DG Level to review the implementation of CEPA was held on 11th September 2013 in Seoul.

Annual Report 2013-14

A Comprehensive Economic Partnership Agreement (CEPA) between India and Japan was signed on 16th February, 2011. This Agreement has come into force from 1st August, 2011. The first Meeting of the Joint Committee under India-Japan CEPA at ViceMinister/Commerce Secretary level was held in New Delhi on 1st August, 2011 in New Delhi. The second meeting of the Joint Committee was held on 17th October, 2012 in Tokyo. Engagements Visit of Chinese Premier to India Mr. Li Keqiang, Premier of the State Council of the People’s Republic of China visited India during 19-22nd May, 2013. During the visit three MoUs/Agreement were signed between India and China on trade issues which are expected to allow Indian products’ market access in China: •

MoU for the export of buffalo meat from India to China between the APEDA and the General Administration of Quality Supervision, Inspection and Quarantine of the PRC (AQSIQ).

•

Agreement on Trade and Safety of Feed and Feed Ingredients between the Export Inspection Council of India, M/o C&I, Govt. of India and the General Administration of Quality Supervision, Inspection and Quarantine of the PRC.

•

MOU on Cooperation Related to Import and Export Trade of Fishery Products between the Marine Products Export Development Authority, M/o C&I, Govt. of India and the General Administration

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Commercial Relations, Trade Agreements and International Trade Organisations

Indian exports to the Republic of Korea during 2012-13 amounted to US$ 4.20 billion registering a decline of 3.43 % over the last year while imports from Korea amounted to US$ 13.10 billion registering a growth of 2.44 % during the year. Major items of exports include petroleum products, wheat, aluminium, oil meals, ferro alloys, inorganic/ organic chemicals, cotton yarn, non-ferrous metals, machinery & instrument and dyes & intermediates. Major items of imports are transport equipment, machinery, iron & steel, electronic goods, artificial resins, plastic materials, organic chemical, petroleum products, project goods, manufactures of metals, rubber.

India - Japan CEPA

of Quality Supervision, Inspection and Quarantine of the PRC (AQSIQ).

III. Trade with North America Free Trade Agreement (NAFTA)

Visit of Indian Prime Minister to China

India-US Bilateral Trade

The then Prime Minister of India visited Beijing, China during Oct. 2013. The leaders of the two countries recognized that India and China are poised to enter a new stage of economic engagement based on pragmatic cooperation and mutually advantageous policies and practices.

In 2013-2014, USA was India’s second largest trading partner and largest export destination accounting for 12.5 % of India’s total exports. The bilateral trade figures for the years 2008-09 to 2013-14 (Provisional) are given below:

Table 6.15

Chapter-6

(US $ million)

Year

Exports

2008-09 2009-10 2010-11 2011-2012 2012-13 2013-14 (P)

21,149.53 19,535.49 25,295.80 34,745.52 36,160.84 39,169.47

Percentage Growth 2.02 -7.63 29.49 37.36 4.07 8.32

Imports 18,561.42 16,973.68 20,050.72 23380.86 25,204.73 22,313.80

Percentage Growth (-)11.89 -8.55 18.13 16.61 7.80 (-)11.47

Trade balance (+) 2,588.12 (+) 2,561.82 (+) 5,245.09 (+) 11364.66 (+) 10,956.11 (+) 16,855.67

(Source: DGCIS Kolkata)

The major items of export from India to the US are Gems & Jewellery; Drugs; Pharmaceuticals & Fine Chemicals; Petroleum(Crude and Products); RMG Cotton including Accessories; Machinery and Instruments; Manufactures of Metals; Cotton Yarn, Fabrics, Madeups; Transport equipments; Guergum Meal etc. The major items of import from USA to India are Transport Equipments; Machinery (except Elec. & Electronic); Electronic Goods; Gold; Professional Instruments; Petroleum, Crude and Products; Chemical material and products; organic chemicals, etc.

128

Institutional Mechanisms In order to resolve issues of concern for both sides the following are the two Institutional Mechanisms with the US: India-US Commercial Dialogue The India–US Commercial Dialogue (CD) was envisaged in the statement “India-US Relations: A vision for the 21st Century” made by the then Prime Minister of India and the President of USA on 21 March, 2000. The India US Commercial Dialogue was signed on March 23, 2000. The dialogue is an institutional arrangement between US and Department of

Annual Report 2013-14

As part of the India-US Commercial Dialogue, both the countries are currently exchanging information on Standards Cooperation and Sustainable Manufacturing. Under the Standards Cooperation, information is being exchanged on each country’s approach to standardization for the development and deployment of an interoperable Smart Grid; Initiate discussion on Intelligent Transportation Systems standards with key U.S. and Indian government and regulatory stakeholders and explore opportunities to collaborate. Under Sustainable Manufacturing both sides are exploring possibilities of cooperation in areas such as Environmental Stewardship, Increased Competitiveness and Value Addition, Green Technology Demand, Innovation, Job Creation, Skills Development and SMEs. The last G2G and B2B session on Sustainable Manufacturing under the aegis of CD was held in Las Vegas. India-US Trade Policy Forum India-US Trade Policy Forum (TPF), announced during the visit of the then Prime Minister

Annual Report 2013-14

Dr. Manmohan Singh to the US in July, 2005, is a part of the overall Strategic Dialogue between India and the United States and is designed to expand bilateral trade and investment relations between India and the United States. The TPF is co-chaired by the then Minister of Commerce & Industry and the United States Trade Representative. A Private Sector Advisory Group (PSAG) was formed in April 2007 as an adjunct to the TPF to provide the TPF with views and advice from non-government trade and investment experts. The PSAG members offer recommendations and policy suggestions, and inject new ideas into the TPF dialogue. During the visit of the then Commerce and Industry Minister to USA in July, 2013, both sides decided to do preparatory ground work through a series of DVC consultations between subject experts as a precursor to holding the next round of TPF. Two rounds of DVCs have so far been held. India-Canada Bilateral Trade India’s total trade with Canada crossed US $ 5 billion in 2013-2014 with exports to Canada accounting for 0.65 % of India’s total exports and imports accounting for 0.73% of our global imports. Bilateral trade figures between India and Canada from 2008-09 to 2013-2014 (Provisional) are given below:

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Commercial Relations, Trade Agreements and International Trade Organisations

Commerce and is aimed at facilitating trade and maximizing investment opportunities across a broad range of economic sectors, including IT, infrastructure, biotechnology and services. The ‘Commercial Dialogue’ arrangement is reviewed every two years. CD was last renewed in 2012 for a period of two years up to March, 2014. Its extension beyond March, 2014 and upto March 2016 has been conveyed to the US side.

Table 6.16

(US $ Million)

Year

Chapter-6

2008-09 2009-10 2010-2011 2011-2012 2012-13 2013-14 (P)

Exports 1,364.41 1,122.77 1,348.86 2,053.56 2,036.58 2,039.51

Percentage Growth 7.72 -17.71 20.14 52.24 -0.83 0.14

The major commodities of export to Canada are Drugs, Pharmaceuticals & Fine Chemicals; Manufactures of Metals; RMG Cotton including Accessories; Gems & Jewellery; Machinery and Instruments; Marine Products; Cotton Yarn, Fabrics, Made ups; etc. The major items of import from Canada are Pulses; Metalifers ores and metal scrap; Fertilizers manufactured; Petroleum, Crude and Products; Newsprint, Coal, Coke and briquittes etc; Electronic Goods; Gold; Pulp and waste paper ; Machinery (except electrical and electronic), etc. India-Canada Trade Policy Consultations Annual Trade Policy Consultations (TPCs) between India and Canada were formalized in October 2003. TPC mechanism provides an effective platform to deal with trade barriers and explore new areas of economic cooperation. TPC is co chaired by Commerce Secretary on the Indian side and Deputy Minister of International trade on the Canadian side. The 7th Meeting of the IndiaCanada Trade Policy Consultations was held in October, 2010 in New Delhi at the level of the Commerce Secretary(India) and Deputy Minister of International trade(Canada). No

130

Imports 2,458.65 2,097.35 2,029.98 2,897.55 2,800.22 3,271.11

Percentage Growth 24.10 (-)14.70 (-)3.21 42.74 (-)3.36 16.82

Trade balance (-) 1,094.24 (-) 974.58 (-) 681.13 (-) 844.00 (-) 763.64 (-) 1,231.60

meetings have been held thereafter. India-Canada Annual Ministerial Dialogue India-Canada Joint Statement issued on 27th June 2010 during the visit of the then Prime Minister to Canada called for an annual dialogue on Trade and Investment between Canadaâ&#x20AC;&#x2122;s Minister of International Trade and Indiaâ&#x20AC;&#x2122;s Minister of Commerce and Industry. Two meetings of the India-Canada Annual Ministerial Dialogue on Trade and Investment have been held so far since its inception in June, 2010, the first at Ottawa in September, 2010 and the second in New Delhi in November, 2011. India Canada CEPA The announcement of launch of IndiaCanada CEPA negotiations was made by Prime Ministers of both the countries in Seoul in November 2010. Negotiations were formally launched by CITM and Canadian Trade Minister Van Loan on 16 November 2010 in New Delhi, following the release of the Canada-India Joint Study Report, in September 2010. The agreement covers Trade in Goods, Trade in Services, Rules of Origin, Sanitary and Phytosanitary Measures,

Annual Report 2013-14

Technical Barriers to Trade and other areas of economic cooperation. Eight rounds of negotiations have taken place. The 8th Round was held in Ottawa, Canada from 24-26 June, 2013. The next round of negotiations is proposed to be held in New Delhi.

India-Mexico Bilateral Trade Indiaâ&#x20AC;&#x2122;s total exports to Mexico were US $ 2.22 billion and imports were US $ 3.67 billion in 2013-2014. Bilateral trade figures between India and Mexico from 2008-09 to 2013-2014 (Provisional) are given below: (US $ million)

Year

Exports

Percentage Growth

Imports

Percentage Growth

Trade balance

2008-09

659.51

11.34

1,725.09

45.07

(-) 1,065.58

2009-10

596.18

-9.60

1,048.97

-39.19

(-) 452.79

2010-11

913.22

53.18

1,163.45

10.91

(-) 250.23

2011-2012

1,368.21

49.82

2,566.79

120.62

(-) 1198.58

2012-13

1,628.24

19.00

4,037.62

57.30

(-) 2,409.37

2013-14 (P)

2,222.55

36.50

3,673.27

(-)9.02

(-) 1,450.73

The major commodities of export to Mexico are Transport Equipments; Manufactures of metals; Aluminum other than products; Machinery and Instruments; Inorganic/Organic/Agro chemicals; Drugs, Pharmaceuticals & Fine Chemicals; Nonferrous metals; RMG Cotton including Accessories, Manmade Yarn, Fabrics, Made ups; Plastic products, etc. The major commodities imported from Mexico are Petroleum, crude and products; Electronic Goods, Organic Chemicals; Metalifers ores and metal scrap; Machinery (except Elec. & Electronic); Transport Equipments, Project goods, etc. India Mexico BHLG A Memorandum of Understanding (MOU) was signed between India and Mexico on 21 May, 2007 at New Delhi by the then Minister

Annual Report 2013-14

of Commerce and Industry and Minister of Economy, Mexico for the establishment of a Bilateral High Level Group (BHLG) on Trade, Investment and Economic Cooperation. This MOU envisages establishing a Bilateral High Level Group (HLG) on Trade, Investment and Economic Cooperation that shall meet once a year alternately in each country. The functions of the HLG mainly include promoting bilateral cooperation, maintaining liaison in the economic, commercial, technical and other related fields and information exchange. Under the BHLG six Working Groups have been created â&#x20AC;&#x201C; (i) Trade Promotion (ii) Investment Promotion (including infrastructure) (iii) Custom Cooperation (iv) Services Promotion (v) Tourism Promotion and (vi) Industrial dialogue with private sector participation (Chemical-Pharma, Textiles and Bio-fuels sectors.)

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Table 6.17

IV. Trade with Europe

also a bloc of EFTA countries comprising of Switzerland, Norway, Iceland and Liechtenstein. Turkey, Albania, Bosnia and Herzegovina, Macedonia and Serbia while considered part of Europe, are neither a member of the EU nor EFTA blocs.

The European Union (EU) consists of 28 countries viz. Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovak Republic, Slovenia, Spain, Sweden and U.K. Besides, there is

European countries accounted for about 18.65% of India’s total export and 15.7% of India’s total import during 2013-14. During this year, India’s trade with Europe has declined by 10.17% as compared to the previous year 2012-13 with exports increasing by 4.02% and imports decreasing by 19.26%.

The Third Meeting of the India - Mexico Bilateral High Level Group on Trade, Investment and Economic Cooperation was held on October 30, 2012 in New Delhi.

Chapter-6

Table 6.18

(US $ million)

Year

Exports

2009-10 2010-11 2011-12 2012-13 2013-14

38,523 49,926 57,798 56,051 58,304

Growth rate (%) (-)8.44 29.6 15.77 (-)3.02 4.02

Imports 55,713 71,181 94,056 87,528 70,670

Growth rate (%) (-)2.71 27.76 32.14 (-)6.94 (-)19.26

Total Trade Balance of Trade 94,236 (-)17,190 1,21,107 (-)21,255 1,51,854 (-)36,258 1,43,579 (-)31,478 1,28,974 (-)10.17

(Source: DGCI&S)

The top five items of India’s exports to Europe and import from Europe during the

period during the year 2013-14 are at Tables below:

Table 6.19 Top five commodities of exports to Europe:

(US $ million)

Commodity Petroleum (Crude & Products)

Apr-Mar 2013

%Growth

8,842.76

-14.63

15.17

Ready-made Garments Cotton 3,993.95 including Accessories

4,246.48

6.32

7.28

Gems & Jewellery

3,920.12

10.38

6.72

132

10,357.61

Apr-Mar 2014

3,551.41

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Commodity

Apr-Mar 2013

Apr-Mar 2014

%Growth

Machinery and Instruments

3,462.22

3,953.59

14.19

6.78

Transport Equipments

3,854.94

3,761.52

-2.42

6.45

Total of all commodities

56050.47

58304.1

4.02

100

(US $ million)

Commodity Gold

Apr-Mar 2013 Apr-Mar 2014

%Growth

29,953.09

17,449.08

-41.74

24.69

Pearls Precious Semi-precious Stones

9,633.25

9,890.01

2.67

13.99

Machinery (except Electrical & Electronic)

10,308.53

8,532.53

-17.29

12.07

Transport Equipments

5,769.90

5,354.38

-7.20

7.58

Electronic Goods

3,697.75

3,199.52

-13.47

4.53

Total of all commodities

87528.32

70669.92

-19.26

100

(Source: DGCI&S)

Focus-strategy to explore new markets in Europe With an objective to further explore new markets in Europe with high business potential, CII undertook a study on Accelerating Economic Engagement between India and Nordic Region and Trade & Investment Relations between India and Central Europe. The two reports provide an exhaustive view of trade opportunities existing in Central Europe and Nordic Regions, identifying food processing, IT Industry, Automotive, Agriculture, Agro-Machinery, Tourism etc. as key areas of potential collaboration.

Annual Report 2013-14

European Union (EU) EU as a regional bloc is India’s largest trade partner. The relationship between the European Union and India has matured substantially in recent years, from that of an aid donor-recipient, to one of partnership with opportunities for mutual benefit. The EU and India, as the two largest democracies in the world and global actors in a multi-polar world, today share a Strategic Partnership, of which commercial interaction forms a key component. The frequency and intensity of India’s contacts with the EU have grown exponentially since 2000. India’s engagement

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Commercial Relations, Trade Agreements and International Trade Organisations

Table 6.20 Top five commodities of imports from Europe:

Chapter-6

with EU in trade in goods has increased by more than five times between 2000 and 2014. India and the EU have enjoyed healthy economic relations. These relations have been built on the foundations of (i) Cooperation Agreement between European community and India on Partnership and Development - 20th December, 1993 (ii) Agreement on Scientific and Technological Cooperation, 2001 (renewed in 2007), (iii) Agreement on Customs Cooperation, 2004, (iv) EU-India Horizontal Civil Aviation Agreement, 2008, (v) Agreement on nuclear fusion energy research, 2009, (vi) Joint declaration on Culture in December, 2010. India also has bilateral framework Agreements with a number of individual EU countries in areas of trade, investment and avoidance of double taxation. India has agreements for investment promotion and protection with 28 countries of Europe, including 16 countries of EU. Similarly, agreements for avoidance of double taxation exist with 28 countries of Europe, including 20 countries of EU. India-EU bilateral relations are periodically reviewed at the official level by the IndiaEC Joint Commission, which held its last meeting in New Delhi on 4th February, 2013. Three Sub-Commissions on Trade, Economic

Cooperation and Development Cooperation and seven Joint Working Groups on agriculture and marine products, textiles, steel, food processing industries, pharmaceuticals & bio-technology, Customs Cooperation and technical barriers to trade (TBT)/sanitary and phyto sanitary (SPS) issues are active. In 2014, the meetings of Sub Commission on Trade and Sub Commission on Economic Cooperation and Sub Commission on Development Cooperation were held on 7.3.2014, 6.3.2014 and 3.6.2014 respectively. Indiaâ&#x20AC;&#x2122;s trade with the EU is hampered by nontariff barriers such as sanitary and phytosanitary standards, technical barriers, complex system of quota/tariff, anti-dumping/antisubsidy measures against Indian products etc. These issues which have a bearing on market access for Indiaâ&#x20AC;&#x2122;s exports to the EU are regularly taken up in the Joint Working Groups and the Sub-Commission on Trade. The EU market has stringent quality norms and standards. Indian trade and industry also needs to meet these norms to increase the market share of Indian products in EU. Issues affecting trade with individual European countries are also taken up at the bilateral fora in the form of Joint Commissions. This continuous dialogue helps in creating an environment for enhancing bilateral trade and investment flows.

Table 6.21 Trade with European Union

134

(US $ million)

Year

Exports

Growth rate (%)

Imports

Growth rate (%)

Total Trade Balance of Trade

2009-10

36,028

-8.45

38,433

-10.06

74,461

-2,405

2010-11

46,078

27.89

44,540

15.89

90,618

1,538

Annual Report 2013-14

Year

Exports

Growth rate (%)

Imports

Growth rate (%)

Total Trade Balance of Trade

2011-12

52,603

14.16

56,530

26.92

109,133

-3,927

2012-13

50,469

-4.06

52,275

-7.53

102,744

-1,806

2013-14

51,595

2.23

49,504

-5.30

101,099

2,091

Updated status in respect of india EU-BTIA negotiations

Both sides are working towards finalization of the agreement.

In order to deepen and strengthen bilateral trade and investment relations, India and the EU decided to enter into a Broad based Trade and Investment Agreement in June, 2007. A High-Level Trade Group (HLTG) was established to explore ways and means to widen and broaden the economic relationship and explore possibility of a trade and investment agreement. So far, fifteen rounds were held at Commerce Secretary level, the last being in December 2012 in New Delhi. The last Ministerial Review meeting between Commerce Minister and Trade Commissioner, EU was held in Brussels on 15th April, 2013.

India-EFTA Trade and Economic Partnership Agreement (TEPA) India and EFTA countries comprising Switzerland, Liechtenstein Norway and Iceland (Non-EU Countries in Europe) enjoy strong trade and economic relations. The bilateral trade has increased from US$ 14,174 million in 2008-09 to US$ 22,234 million in 2013-14, with average annual growth rate of 11.37% during the last five years. During 2013-14 the trade has declined by 35.54%. While, exports increased by nearly 50% imports declined by 39%. Trade with EFTA countries during last five year is indicated in the table below:

Table 6.22 Trade with EFTA countries

(US $ million)

Year

Exports

Growth rate (%)

Imports

Growth rate (%)

Total Trade

Balance of Trade

2009-10

835.44

-29.23

15,615.79

20.18

16,451.24

(-)14,780.35

2010-11

954.43

14.24

25,768.34

65.01

26,722.77

(-)24,813.91

2011-12

1,471.64

54.19

33,155.81

28.67

34,627.45

(-)31684.17

2012-13

1,378.97

(-)5.82

33,114.59

(-)8.28

34,493.56

(-)31,735.62

2013-14

2,067.25

49.91

20,166.81

-39.1

22,234.06

(-)18099.56

(Source: DGCI&S)

Annual Report 2013-14

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Commercial Relations, Trade Agreements and International Trade Organisations

(Source: DGCI&S)

Chapter-6

In order to strengthen trade and investment relations with the European Free Trade Association (EFTA) countries an India-EFTA Joint Study Group (JSG) was established in December, 2006 to take a comprehensive view of bilateral economic linkages, covering among others, trade in goods and services, investment flows, and other areas of economic cooperation and to examine the feasibility of a bilateral broad based trade and investment agreement. The JSG recommended commencement of negotiations and so far 13 rounds of negotiations were held, the last being in November 25-29, 2013 in New Delhi. The TEPA is expected to boost bilateral trade and economic cooperation between India and EFTA.

(Trade, Economic Cooperation & Development) and priority areas of bilateral cooperation viz. India EU BTIA, Research and Innovation, Energy, Skills Development, Migration and Mobility. •

The 13th Economic Joint Commission between the Belgium-Luxembourg Economic Union (BLEU) was held in Brussels during 1-2 July, 2013. It was co-chaired by Shri S.R. Rao, the then Commerce Secretary from Indian side and Mr. Dirk ACHTEN, Secretary General from Belgium side and Mr. Jean GRAFF, Ambassador from Luxembourg side. The Commission discussed issues related to Economic developments in India, Belgium and Luxembourg, Multilateral aspects, Investment Issues, Economic Cooperation, Infrastructure, Ports, Diamonds, Customs, Diversification of Trade and new areas of Cooperation, Market Access Issues, Bilateral Agreements, Higher Education and Developments and Consular Issues.

•

The 7th Session of India - Slovakia Joint Economic Committee was held in Bratislava on 11th July, 2013. It was cochaired by Dr. (Ms.) D. Purandeswari, the then Minister of State for Commerce from Indian side and Mr. Pavol Pavlis, State Secretary in the Ministry of Economy from Slovak side. The Commission reviewed current global economic situation and bilateral trade. The Commission discussed issues related to, cooperation in the financial sector, Standards and Metrology, Science and Technology, Energy, Micro, Small and Medium Enterprises, Tourism, Textiles, Pharmaceuticals.

Institutional Mechanism India has established several institutional mechanisms with European countries i.e. UK, France, Spain, Italy, Portugal, BelgiumLuxembourg, Switzerland, Czech Republic, Slovak Republic, Serbia, Croatia, Slovenia, Austria, , Bulgaria, Bosnia & Herzegovina, Cyprus, Finland, Greece, Romania, Turkey and the European Union. These institutional mechanisms are handled by Department of Commerce at various levels. JEC Meetings held during January 2013 to March 2014: •

136

The 22nd session of the India-EU Joint Commission was held in Brussels on 4th February, 2013. It was co-chaired from the EU by Chief Operating Officer of the European External Action Service (EEAS) and by Secretary of Commerce of the Indian Ministry of Commerce and Industry. The meeting discussed progress of three Sub Commissions

Annual Report 2013-14

The 8th Session of India - Slovenia Joint Economic Committee was held in New Delhi on 16th July, 2013. It was co-chaired by Mr. Sumanta Chaudhuri, Joint Secretary from Indian side and Dr. Stanislav Rascan Director General in the Directorate for Economic Diplomacy, Ministry of Foreign Affairs from Slovenian side. The Commission reviewed current global economic situation and bilateral trade. The Commission also discussed issues related to cooperation in the sectors viz. Micro, Small and Medium Enterprises, Financial and Banking sectors, Science and Technology, Air Transport, Tourism, Power, Film production, Standardization, and cooperation between business chambers of the two countries.

•

The 13th Session of India –Austria Joint Economic Commission was held in New Delhi on 11th September, 2013. It was co-chaired by Shri Sumanta Chaudhuri, Joint Secretary from Indian side and Mrs Bernadette Marianne Gierlinger, Vice Minister for Foreign Economic Policy and European Integration in the Federal Ministry of Economy, Family and Youth from Austrian side. The Commission discussed issues related to cooperation in the Infrastructure, Railways, Road Transport, Shipping, Iron & Steel, Ayurveda and traditional Indian medicine.

•

The 9th meeting of the India UK Joint Economic and Trade Committee (JETCO) was held in Delhi on 9th Dec, 2013. It was co-chaired by Shri Anand Sharma, the then Hon’ble Minister for Commerce and Industry from Indian side and by Dr. Vince Cable, Secretary for Business,

Annual Report 2013-14

Innovation and Skills from the UK side. The JETCO provides a platform for the government and business to work together to enhance bilateral trade and investment. JETCO meeting was preceded by three Working Groups meetings namely Education and Skill, Advance Manufacturing & Engineering and Innovation and conclusions of these Joint Working Group were presented in the plenary session of the JETCO by the group representatives. Both sides appreciated the valuable inputs provided by the members of these working groups and underlined the importance of continued healthy engagement for a strong foundation for enhancing bilateral economic cooperation. •

The 10th Session of India –Turkey Joint Committee for Economic and Technical cooperation was held in New Delhi on 30thJanuary, 2014. It was co-chaired by Shri Anand Sharma, the then Commerce & Industry Minister from Indian side and Mr. Nihat Zeybekci, Minister of Economy of the Republic of Turkey from Turkish side. The Commission discussed issues related to cooperation in the field of investment, Customs matters, Health, Agriculture, Special Economic Zone, Energy, Transportation, Tourism, Science and Technology, Small and Medium Enterprises and Standardization & Metrology.

•

The India-EU Sub Commission on Economic Cooperation was held on 6th March, 2014 in Brussels. It was co-chaired by Shri Dammu Ravi, Joint Secretary from Indian side and Mr. Ugo Astuto, Director EEAS from EU side. The

137

Commercial Relations, Trade Agreements and International Trade Organisations

•

discussions were held in three broad sectors viz, promoting Sustainable Development, Research & Innovation and People to People exchanges. â&#x20AC;˘

The India-EU Sub Commission on Trade was held in Brussels on 7th March, 2014. It was co-chaired by Shri Dammu Ravi, Joint Secretary from Indian side and Ms. Signe Ratso, Director (Trade Division, EC) from EU side. Both sides jointly reviewed reports of six Joint Working Group with EU (Agriculture, Marine Products, Pharmaceuticals, Customs, SPS/TBT and Steel & Textiles)

and discussed several contentious trade issues.

V. Trade with Commonwealth Independent States (CIS)

The Commonwealth of Independent States (CIS) comprises the Russian Federation, Armenia, Azerbaijan, Belarus, Georgia, Moldova, Ukraine, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan (the last 5 countries jointly referred to as the Central Asian Republics). Bilateral trade with these countries is as shown in the graph below:

Bilateral trade with CIS region

Chapter-6

12,000.00

10,000.00

8,000.00 Export

6,000.00

Import Total Trade

4,000.00

2,000.00

0.00 2009-10

2010-11

2011-12

2012-13

Table 6.23 Trade with CIS

US$ Million

Year

Export

Import

Total Trade

%Growth

2009-10

1,687.68

6,104.00

7,791.68

(-)9.8

2010-11

2,681.86

5,664.28

8,346.15

(+)7.11

2011-2012

3,059.98

8,237.84

11,333.82

(+)35.79

2012-2013

3,682.98

7,879.78

11,562.76

(+)2.01

2013-14 (April to March) (P)

3508.79

7,748.66

11257.45

(Source: DGCI &S) l

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Annual Report 2013-14

Russia under the Co-Chairmanship of Shri Anand Sharma, Minister of Commerce, Industry & Textile from the Indian side and Mr. Dmitry Rogozin, Deputy Prime Minister of the Russian Federation from the Russian side. •

Russian Federation The Russian Federation, constituting a major portion of the former USSR, continues to be India's most important trading partner in the region accounting for about 56.45% of India’s total trade with CIS region in 2012-13. During 2013-14, following meetings were held to discuss various issues concerning bilateral cooperation: •

•

19th Session of the Indo-Russian InterGovernmental Commission on Trade, Economic, Scientific, Technological and Cultural Cooperation was held on 4th October, 2013 in Moscow, Russian under the Co-Chairmanship of Shri Salman Khurshid, Minister of External Affairs from the Indian side and Mr. Dmitry Rogozin, Deputy Prime Minister of the Russian Federation from the Russian side. 7th Session of India-Russia Forum on Trade & Investment was held 20th Septmeber, 2013, at St. Petersburg,

Annual Report 2013-14

19th Session of the India-Russia Working Group on Trade & Economic Cooperation under the aegis of the Indo-Russian InterGovernmental Commission on Trade, Economic, Scientific, Technological and Cultural Cooperation was held on 11th September, 2013 in Moscow, Russian. under the Co-Chairmanship of Shri Ravi Capoor, Joint Secretary, Department of Commerce from the Indian side and Mr. Evgeny Popov, Director of the Department of the Countries of Asia and Africa, Ministry of Economic Development of the Russian Federation from the Russian side.

Central Asian Republics Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan, constitute the five Central Asian Republics in the CIS region. Department of Commerce is the nodal Department for the Inter-Governmental Commission (IGC) with Kyrgyzstan, Tajikistan and Uzbekistan. During 2013-14, following events were held: •

6th session of the India-Kyrgyzstan Inter-Governmental Commission (IGC) on Trade, Economic, Scientific and Technological Cooperation was held on 18th-19th July, 2013 in Bishkek, Kyrgyzstan. The Indian delegation was led by MoS (C&I) who is also the cochairperson of the IGC from the Indian side.

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Commercial Relations, Trade Agreements and International Trade Organisations

The CIS region had a share of 1.23 per cent in India’s exports and 1.61 per cent in its imports during 2012-13. The principal commodities of exports to the region include drugs and pharmaceuticals & fine chemicals, machinery & instruments, electronic goods, plastic and linoleum products, tea, coffee, meat & preparation, transport equipments, RMG cotton including accessories, manufactures of metals etc. Important items of imports to India from this region are iron and steel, fertilizers, non-ferrous metals, petroleum, crude & products, silver, synthetic & reclaimed rubber, vegetable oils, newsprint, project goods, crude minerals, inorganic chemicals, metalifers ores and metal scrap etc.

Chapter-6

•

7th India-Tajikistan Joint Commission Meeting (IT-JCM) on Trade Economic, Scientific and Technical Cooperation to be held during 19th-20th February 2013, co-chaired by Shri S.R. Rao, CS from Indian Side and Mr SharifRahirnzoda, Minister of Economic Development and Trade from Tajik Side.

•

3rd session of India-Kazakhstan Joint Working Group on Trade and Economic Cooperation was held on 20th -21st Feb. 2014 in New Delhi under the cochairmanship of Shri Ravi Capoor, Joint Secretary, DoC and Mr. Kairat Torebayev, Director, Department of International Cooperation from Kazakh Side.

•

10th session of India-Uzbekistan InterGovernmental Commission on Trade, Economic, Scientific, Technological, Industrial and Cultural Cooperation was held on 04th- 05th March, 2014 under the co-chairmanship of Shri Ravi Capoor, Joint Secretary, DoC and Mr. D. Turdiev, Deputy Minister of Economy from Uzbek side.

Cooperation was held on 24th July, 2013 January, 2012 in New Delhi. •

First meeting of India-Belarus Joint Working Group (JWG) on Trade and Investment was held on 23rd July, 2013.

•

2nd Session of the India-Ukraine Working Group on Trade & Economic Cooperation under the aegis of the Indo-Ukraine InterGovernmental Commission on Trade, Economic, Scientific, Technological, Industrial and Cultural Cooperation was held during 21st & 22nd March, 2013 under the Co-Chairmanship of Mr. Ravi Capoor, Joint Secretary, Department of Commerce from the Indian side and Mr. Ruslan Osypenko, Department- Director, Ministry of Economic Development and trade of the Ukraine from the Ukrainian side.

•

5th Session of the Indo-Ukrainian InterGovernmental Commission on Trade, Economic, Scientific, Technological, Industrial and Cultural Cooperation was held on 13th -14th Nov. 2013 under the co-chairmanship of Mr. E. Ahamed, Minister of State for External Affairs from Indian side and Mr Ihor PRASOLOV, Minister of Economic Development and Trade of Ukraine from Ukraine side.

•

3rd Session of India-Azerbaijan InterGovernmental Commission on Trade, Economic, Scientific, Technological, Industrial and Cultural Cooperation was held on 24th -25th February, 2014 under the co-chairmanship of Dr. E.M. Sudarasana Natchiappan, MoS(C&I) from Indian Side and Prof. Huseyngulu Baghirov, Minister of Ecology and Natural Resources from Azerbaijan Side.

Other CIS Countries Other six CIS countries are Armenia, Azerbaijan, Belarus, Georgia, Moldova and Ukraine. Ukraine is India's second largest trading partner of the CIS region accounting for about 25% of India’s total trade with CIS region in 2012--13. Department of Commerce is the nodal Department for the Inter-Governmental Commission (IGC) with Azerbaijan. During 2013-14, following events were held: •

140

6th meeting of India-Belarus InterGovernmental Commission on Trade, Economic, Scientific and Technological

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Other Events •

•

There is a regular exchange of delegations with CIS countries through participation in trade fairs of mutual interest and exchange of trade related information.

•

Bilateral trade and economic cooperation between India and these countries is regularly reviewed through the meetings of Joint Commissions / Working Groups and Joint Business Councils.

•

There is a regular interaction at the Governmental level for enhancing bilateral trade and economic cooperation.

•

A series of outreach programme on the subject of trade & investment in 12 CIS countries has been initiated by FT (CIS) Division. Outreach programmes held so far are tabulated below.

Trade Promotion and other Activities •

"Focus: CIS Programme" launched in 2003-04 now covers all the CIS countries. The programme seeks to increase interaction between the business entities of the two regions by identifying areas of bilateral trade and investment. The focus is on major product groups/ services for raising India's exports to this region. The exports to the region are to Station where held

Date of programme

Organizer

Ahmadabad

18th April, 2013

DoC and CII

Srinagar

11th June, 2013

MEA, DoC and FICCI

New Delhi

29th Augt. 2013

DoC and PHD Chamber

Bangalore

15th Oct. 2013

DoC and FICCI

Chennai

20th Nov. 2013

DoC and FIEO

Ludhiana

26th Nov. 2013

DoC and FICCI

Kolkata

29th January, 2014

DoC and FIEO

Inter Governmental Commission/Joint Commission - with CIS Countries under Department of Commerce •

India-Azerbaijan Inter Governmental Commission on Trade, Economic,

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Scientific & Technological Cooperation under the Co-Chairmanship of Minister of State for Commerce and Industry •

India-Kyrgyzstan Inter Governmental Commission (IGC) on Trade, Economic,

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5th Meeting of Coordination Council of International North-South Transport Corridor (INSTC) was held on 24th25th June, 2013 in Baku, Azerbaijan. Meeting was attended by Islamic Republic of Iran, Republic of Azerbaijan, Kazakhstan, Russian Federation Syria, Turkey, Belarus and India. Proposal of FFFAI for conducting Dry Run Study on INSTC is approved by DoC and it may be conducted very soon.

be enhanced through combined efforts of various institutions of the Government of India and various Trade Promotion Organizations.

Scientific & Technological Cooperation under the Co-Chairmanship of Minister of State for Commerce and Industry •

•

India-Uzbekistan Inter-Governmental Commission (IGC) on Trade, Economic, Scientific & Technical Cooperation under the Co-Chairmanship of Minister of State for Commerce and Industry. India-Tajikistan Joint Commission on Trade, Economic, Scientific & Technical Cooperation under the Co-Chairmanship of Commerce secretary.

Chapter-6

VI. T rade with Latin American and Caribbean Countries FT (LAC) Division in Department of Commerce strengthens promotion of India’s trade and commercial relations with LAC countries, which consist of 43 countries. Traditionally, relations between India and LAC countries, despite vast distances and poor connectivity, have always remained warm and cordial with greater convergence on multilateral trade issues. We are making concerted efforts to unleash the full potential of our trade and

commercial relations with the region as a policy of diversifying our markets. Keeping this in view we have been undertaking promotional activities, awareness building and business interactions. Trade and Investment with the Latin American and Caribbean Countries (LAC) During the last decade our bilateral trade and economic relations with LAC region have gradually grown. The total bilateral merchandise trade with the region increased from a modest US$ 2.01 billion in 2003-04 to US$ 39.68 billion in 2013-14. Our trade with the region constituted 5.2% of the total bulk trade and the percentage share of India’s exports to Latin America in its global imports is 3.46% and India’s imports from LAC rgion constitute 6.41% of its global exports. Venezuela, Brazil, Colombia, Chile, Argentina, Peru, Bahamas, Ecuador, Costa Rica and Panama are India’s top ten trading partners. India’s cumulative investments in LAC region estimated to be US$ 18 billion cover diverse areas such as hydro carbons, agriculture, mining, pharma and IT.

Table 6.24 India’s trade with LAC countries

(US$ mn)

Year

India’s exports to LAC 2003-04 891.65 2008-09 5,513.04 2009-10 5,614.40 2010-11 9,324.48 2011-12 12,276.85 2012-13 13,518.03 2013 – 14 (P) 10,817.75

% growth of exports -17.81 8.49 1.84 66.08 31.66 10.11 -19.98

India’s import from LAC 1,118.77 8,240.44 9,356.30 13,042.52 16,178.56 27,497.09 28,864.84

% growth Balance of Total trade of imports trade 14.10 53.49 13.54 39.40 24.04 69.96 4.97

-227.13 -2,727.40 -3,741.90 -3,718.03 -3,901.70 -13,979.07 -18,047.09

2,010.42 13,753.48 14,970.70 22,367.00 28,455.41 41,015.12 39,682.59

(Source: DGCI&S, Kolkata) 142

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Table 6.25 Top ten commodities of India's exports to LAC countries

(US $ Million)

Commodity Petroleum (Crude & Products) Transport Equipments Drugs, Phrmcutes & Fine Chemls Machinery And Instruments Inorganic/Organic/Agro Chemls Manmade Yarn, Fabrics, Madeups Cotton Yarn, Fabrics, Madeupsetc Plastic & Linoleum Products Manufactures Of Metals Prmry & Semi-Fnshd Iron & Stl Sum of top 10 commodities total of all commodities

Apr-Mar 2013 6,015.17 1,333.43 812.28 675.8 549.04 543.7 447.82 353.91 364.49 249.8 11,345.43 13,517.94

Apr-Mar 2014(P) 2,997.69 1,525.68 828.85 682.73 621.25 548.12 429.7 373.62 307.52 298.51 8,613.67 10,817.66

%Growth -50.16 14.42 2.04 1.03 13.15 0.81 -4.05 5.57 -15.63 19.5 -24.08 -19.98

% share 2013 - 14 34.8015422 17.7123108 9.62249541 7.92612208 7.21237289 6.36337357 4.9885821 4.33752396 3.57013909 3.46553792 79.63% 100%

(Source: DGCI&S, Kolkata)

Table 6.26 Top ten commodities of India's imports from LAC countries

(US $ Million)

S. No. 1 2 3 4 5 6 7 8 9 10

Commodity Petroleum, Crude & Products Metalifers Ores & Metal Scrap Vegetable Oils Fixed (Edible) Sugar Gold Wood And Wood Products Electronic Goods Other Commodities Coal, Coke & Briquittes Etc. Inorganic Chemicals Sum Of Top 10 Commodities Total Of All Commodities

Apr-Mar 2013 19,845.57 3,457.83 1,310.99 560.02 161.43 218.93 181.9 137.08 138.99 145.46 26,158.21 27,497.07

Apr-Mar 2014(P) 21,415.51 3,623.41 1,341.21 382.56 215.47 202.65 167.82 163.19 129.97 102.1 27,743.90 28,864.81

%Growth 7.91 4.79 2.3 -31.69 33.48 -7.44 -7.74 19.05 -6.49 -29.81 6.06 4.97

% Share 2013 - 14 77.19 13.06 4.83 1.38 0.78 0.73 0.60 0.59 0.47 0.37 96.12 100%

(source: DGCI&S, Kolkata) Annual Report 2013-14

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Commercial Relations, Trade Agreements and International Trade Organisations

S. No. 1 2 3 4 5 6 7 8 9 10

Chapter-6

Focus: LAC Programme

Main events during 2013-14

With the objective to further deepen India’s relations with LAC region, an integrated programme “Focus LAC” was launched in November, 1997. Under this programme, incentives and export promotion measures had been designed. The Foreign Trade Policy (FTP) of 2009 gives special focus to the LAC region as part of our long term strategy to diversify our trade basket. For the purpose of recognition as Export House (EH), Star Export House (SEH), Trading House (TH), Star Trading House (STH) and Premier Trading House (PTH), Double Weight is given to export being made to Latin American Countries under Foreign Trade Policy (FTP) 2009 - 2014. DGFT’s “Focus Market Scheme (FMS), started in April, 2006, that off-sets high freight cost and other externalities to select international markets covered 16 new markets of LAC region, taking the total LAC countries covered under the scheme to 31. The objective of the FMS Scheme is to enhance India’s export competitiveness in markets where presence is hindered by high freight cost and other related disabilities. Under the Market Linked Focus Product Scheme (MLFPS), introduced during 2008-09, 13 markets have been identified incluing Brazil. Further, under Special FMS of the Department of Commerce, 12 countries of LAC region are included; Cuba and Mexico are new entrants in this Category. The objective of MLFPS Scheme is to promote exports of products of high export intensity but which have a low penetration in identified countries. The Focus – LAC programme has been extended upto March 2019 in order to consolidate the gains of the previous year and significantly strengthen India’s trade and investment markets with the region.

The then MoS (C&I), Ms. D. Purandeswari visited the region in June, 2013 covering Mexico, Panama, Costa Ria and Ecuador. She held bilateral meetings with her counterpart in all these countries and concluded MoUs on Economic Cooperation with Costa Rica and Ecuador. During her visit, “Made in India Show” was successfully held in Panama City which was coordinated by CII. President of Panama Mr. Irvin A. Halman graced the Indian Pavilion. In July, 2013, the then CIM, Shri Anand Sharma, visited Brazil and held bilateral talks with his counterpart Mr. Eduardo Pimientel during which both sides took a decision to set up JWGs in selected areas such as Manufacturing, Infrastructure & Innovation, Agriculture, Animal Husbandry & Food Processing, Pharmaceuticals & Life Science, Services (including ICT & tourism), Civil Aviation and Mining

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Institutional Mechanisms India has 12 institutional mechanisms with LAC countries to review trade and investment linkages at the bilateral level. During the year bilateral Joint Economic Commission meetings with Brazil, Argentina and Venezuela were held at External Affairs Minister level. Trade Delegations/ Seminars/ Conferences/ Trade Fairs/ Exhibitions As part of the trade promotional activities, a number of events were organized during the year with the help of Apex bodies. In addition to Made in India Show organized by CII in Panama City during 17 – 20 April, 2013. India – LAC Conclave was held in New Delhi during 9-10 December, 2013. Both the sides

Annual Report 2013-14

attracted large participation from India and LAC entrepreneurs. Earlier during the year CII had also organized India – LAC Conferences/ Seminars in Hyderabad and Bangalore. PTAs Expansion of India-Chile PTA

Lines of Credit

Observer Status of Pacific Alliance Pacific Alliance has accorded “Observer Status” to India in February, 2014. Pacific Alliance is an important trade block consisting of Merico, Colombia, Peru and Chile and was formed in the year 2013.

VII. Trade with Countries in Sub Saharan Africa (SSA) Region Since Independence India has had cordial and friendly trade relations with countries in Sub-Saharan Africa (SSA) Region, consisting of Eastern, Western, Central and Southern Africa. India’s trade with SSA Region since 2008-09 is given in the table below:

India extends Lines of Credit to LAC countries in form of commercial lines and Government Table 6.27 Trade with Countries in Sub Saharan Africa (SSA) Region

(US $ Million)

Year

Exports

Imports

Total Trade

2008-09 2009-10 2010-11 2011-12 2012-13 2013-14(P)

11,390 10,307 15,727 19,980 23461 25788

18,904 20,715 26,062 36,648 34387 31719

30,295 31,022 41,789 56,628 57848 57507

Annual Growth Rate (%) 14.46 2.39 34.70 54.51 2.15 -0.59

(Source: DGCIS)

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Commercial Relations, Trade Agreements and International Trade Organisations

Department of Commerce had concluded negotiation for expansion of India – Chile PTA in August, 2012. Both countries propose to enhance their list from the present Indian list of 178 items to 1068 items and the Chilean list from 296 to 1784 items. This proposal is currently under progress. The proposal of expanding India – MERCOSUR PTA is delayed on account of the slowdown of the MERCOSUR market. Department of Commerce is also pursuing 2 fresh proposals of entering into negotiations on FTAs with Peru and Colombia. However, presently internal studies are being undertaken to explore the possibility of setting up Joint Study Groups.

lines of credit. During the year these were extended to LAC overseas financial institutions and regional development banks to stimulate greater trade between India and the region. Currently there are 17 lines of credit extended to various countries and financial institutions

Chapter-6

Total bilateral trade with countries in SSA Region during 2013-14 amounted to US $ 57507 million with exports amounting to US $ 25,788 million and imports at US $ 31,719 million. Bilateral trade with West African countries was US$ 24,439 million during 2013-14 as compared to US$ 22,788 million during 2012-13. Rice (other than basmoti), drugs, pharmaceuticals and fine chemicals, transport equipments, machinery and instruments, manufactures of metals, cotton yarn, fabrics, madeupsetc, plastic and linoleum products, primary and semi-finished iron and steel, petroleum (crude & products), electronic goods were the major items of export during 2013-14. Petroleum (crude and products), cashew nuts, metalifers ores and metal scrap, gold, wood and wood products, cotton raw, inorganic chemicals, fertilizers, non-ferrous metals and oil seeds were the major items of import during 2013-14. Bilateral trade with countries in Southern Africa was US$ 20,856 million during 2013 as compared to US$ 24,005million during 201213. Petroleum (crude & products), transport equipments, drugs, pharmaceuticals, fine chemicals, machinery & instruments, electronic goods, rice (other than basmati), manufacturers of metals, plastic and linoleum products and gems and jewellery were the major items of export during 2013-14. Gold, Coal, coke and briquittes, metalifers ores and metal scrap, pearls precious, semi-precious stones, non-ferrous metals, machinery except electric and electronic, organic chemicals, inorganic chemicals, pulp and waste paper primary, steel, pig iron based items were the major items of import during 2013-14.

146

Bilateral trade with countries in East Africa was US$ 11,011million during 2013-14 as compared to US$ 98,94 million during 201213. Petroleum (crude and products); drugs, pharmaceuticals & fine chemicals; machinery & instruments; primary & semi-finished iron and steel; transport equipments, plastic and linoleum products, manufactures of metals, rice (other than basmoti), sugar, manmade yarn, fabrics, madeups etc. were the major items of export during 2013-14. Gold, cashew nuts, spices, pulses, metalifers ores and metal scrap, oil seeds, inorganic chemicals, leather, wood and wood products etc. were the major items of import during 2013-14. Bilateral trade with countries in Central Africa was US$ 1202 million during 201314 as compared to US$ 1161 million during 2012-13. Drugs, pharmaceuticals & fine chemicals; machinery & instruments; transport equipments; manufacturers of metals; electronic goods; plastic & linoleum products; primary and semi-finished iron and steel; inorganic, organic, agro chemicals, rubber manufactured products except footwear were the major items of export during 2013-14. Metalifers ores and metal scrap, cotton raw, non-ferrous metals, wood and wood products, essential oil and cosmetic preparation, pulses, medicinal and pharmaceutical products, oil seeds, electronic goods etc. were the major items of import during 2013-14. India and SACU (Southern African Customs Union) PTA. SACU consists of a group of 5 countries, namely, Botswana, Lesotho, Namibia, Swaziland and South Africa. India and SACU (Southern African Customs Union) are negotiating for a

Annual Report 2013-14

Preferential Trade Agreement (PTA). Till now, five rounds of negotiations have been held for negotiating the PTA. The following two Working Groups have been constituted for negotiating the PTA:Working Group on Market Access comprising of two subgroups, namely:

 Sub Group I responsible for market access for trade in goods  Sub Group II responsible for Rules of Origin and Customs Procedures. Working Group on Legal and Institutional Issues responsible for the legal vetting of the text of the PTA, Dispute Settlement, SPS and TBT measures and Safeguards and Trade Remedies.

•

CECPA with Mauritius A comprehensive Economic Cooperation and Partnership Agreement (CECPA) aimed at boosting bilateral trade, investment and general economic cooperation between India and Mauritius is under negotiation.

IV.

Trade Promotion

The Government, as part of efforts to promote trade in Sub-Saharan Africa extends assistance to exporters and Export Promotion Councils etc. to visit countries in Africa and to organize trade fairs and also sponsors African trade delegations to visit India. A number of export promotion activities were conducted by various Export Promotion Councils and Apex Chambers with grant under Market Development Assistance (MDA) and Market Access Initiative (MAI) Scheme. 10th CII Exim Bank Conclave on India-Africa Project Partnership held from 09-11 March,

Annual Report 2013-14

A mega event namely “India Show” organized by Confederation of Indian Industry (CII) in collaboration with Ministry of Commerce and Industry, Government of India, in Dares-Salaam, Tanzania from 25th to 27th September, 2013, was inaugurated by Dr. D.Purandeswari, the then Minister of State for Commerce and Industry, Mr. Seif Sharif Hamad, the First Vice President of Zanzibar and Dr. Abdallah O.Kigoda, Minister of Industry and Trade of the United Republic of Tanzania. During the inaugural address at the India Show, Dr. D. Purandeswari acknowledged the fact that the East African region was the largest export destination for Indian exports among all the regions in Africa and stressed on the importance of peopleto-people contacts for enhancing the trade and investment relations. The then Hon’ble MOS led a large business delegation comprising of CEOs from leading companies in India for the ‘India Show’, comprising of a large Exhibition, Business Seminar and Cultural Programme.

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Commercial Relations, Trade Agreements and International Trade Organisations

•

2014 at New Delhi. More than 30 Ministers from 15 African countries participated in the event where Lesotho was the partner country and Republic of Congo was the focus country. Around 35 journalists and members of parliament from Africa, 520 overseas participants from 45 countries, 594 Indian delegates participated in the event. A total of 549 projects worth 84.379 billion USD was discussed during the event which was the highest number recorded in the last 10 conclaves. 10th Conclave helped in formation of new ideas and strategies, for both Indian and African businesses and Governments to take the South-South cooperation agenda forward.

Joint Trade Committee Meetings 3rd Session of India-Tanzania Joint Trade Committee (JTC) was held in Dar-es-Salaam, Tanzania on 25th September, 2013 which was co-chaired by Dr. D. Purandeswari, the then Honâ&#x20AC;&#x2122;ble Minister of State for Commerce and Industry (MoS), Government of India and Dr. Abdallah O. Kigoda, Minister of Industry and Trade of the United Republic of Tanzania. During the JTC meeting, the two sides reviewed the bilateral trade and investment.

Chapter-6

Bilateral Cooperation Issues pertaining to trade and economic cooperation between India and African countries are reviewed through Joint Commissions and Joint Trade Committees (JTCs). Business to Business interactions have also been encouraged between Apex Indian Chambers and their African counterpart Chambers with a view to further enhance trade and investment relations between India and African Countries. The then CIM had a bilateral meeting with H.E. Mr. Ahmed Shede Mohamed, State Minister of Finance & Economic Development of Ethiopia on 13th June, 2013. The then CIM had bilateral meetings with Mr. Cader Sayed Hossen, Minister of Industry, Commerce and Consumer Protection, Mauritius and Dr. Arvin Boolell, Minister of Foreign Affairs, Regional Integration and International Trade, Mauritius on 04th July, 2013. The then Honâ&#x20AC;&#x2122;ble Minister of State for Commerce and Industry (MoS), Dr. D. Purandeswari had a bilateral meeting with Dr. Abdallah O. Kigoda, Minister of Industry

148

and Trade of Tanzania during 25th to 26th September, 2013. The then CIM visited Mozambique during 27th to 28th September, 2013. During the visit, he had a bilateral meeting with Mr. Armando Inroga, Minister of Industry and Trade, Mozambique. A bilateral meeting held between the then CIM and H.E. Mr. Onkokame Kitso Mokaila, Minister of Minerals, Energy and Water Resources, Botswana on 11th November, 2013 at New Delhi. A bilateral meeting between the then CIM and Mr. Mankeur Ndiaye, Minister of Foreign Affair and Senegalese Abroad, Senegal was held on 16th January, 2014. The then CIM had a bilateral meeting with Mr. M.C. Bimha, Minister of Industry & Commerce, Zimbabwe on 28th January, 2014 on the sidelines of Partnership Summit, 2014. The then CIM also met Mr. Carl H G Schlettwein , Minister of Trade and Industry, Namibia on 28th January, 2014. The then CIM met Ms. Joice T R Mujuru, Vice President of Zimbabwe and Mr. Michael, Bimha, Industry and Commerce Minister of Zimbabwe in Zimbabwe on 03rd February, 2014. On 4th February, 2014, the then CIM called on Mr. Hifikepunye Pohamba, President of Namibia and Dr. Hage geingob, Prime Minister of Namibia. The then CIM had a bilateral meeting with Ms. Claudine Munari, Minister of Trade & Supply, Republic of Congo on 10.03.2014, Mr. Mvouba Isidore, Sr. Minister of Industry, Republic of Congo on 11.03.2014, Mr. Armando Inroga, Minister of Industry and

Annual Report 2013-14

Trade, Mozambique on 11.03.2014 and Mr. M.C. Bimha, Minister of Trade and Industry, Zimbabwe on 11.03.2014. 3rd India-Africa Trade Ministersâ&#x20AC;&#x2122; Meet

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The 2nd meeting of the India-Africa Business Council (IABC), Co-chaired by Dr. Bright Chunga, Acting Co-Chair, IABC from Africa and Mr. Sunil Bharti Mittal, Co-Chair, IABC from India was also convened alongside the 3rd India-Africa Trade Ministers Meeting on 1st October, 2013 in South Africa. The Indian and African industry leaders collectively identified the priority sectors of private investment and presented a report to the Trade Ministers.

VIII. Trade with countries in the West Asia & North Africa (WANA) Region The West Asia and North Africa (WANA) region comprises 18 countries. These are:-

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The 3rd Africa-India Trade Ministers Meet was held in Johannesburg, South Africa on 1st October, 2013 which was co-chaired by the then CIM, Shri Anand Sharma from the Indian side and Dr.Rob Davies, Minister of Trade and Industry of the Republic of South Africa. From the African side the meeting was attended by the Chairperson of the African Union Commission, H.E. Dr Nkosazana Dlamini Zuma, Trade Ministers from 11 countries in Africa, representatives from the Regional Economic Communities (RECs) in Africa like Common Market for Eastern and Southern Africa (COMESA); Economic Community of West African States (ECOWAS); Southern African Development Community (SADC) etc. During the meeting, both sides agreed to consider modalities that would ensure the mutual review and accountability of agreed commitments through a comprehensive monitoring and evaluation mechanism. Both side noted that Africaâ&#x20AC;&#x2122;s RECs have shown concrete movement towards the creation of common markets, which would have a considerable impact on India-Africa economic relations. Both sides emphasized the need to ensure better coherence and coordination of the frameworks that India has with the RECs taking into account the wider integration agenda. The Ministers recognized that there is a vast potential for accelerating investment flows in the potential sectors of cooperation in Agriculture including Agro-processing, Pharmaceuticals, Textiles, Mining, Petroleum and Natural Gas, Information Technology and

Information Technology Enabled Services (IT & ITES), Gems and Jewellery, Core Infrastructure including Roads and Railways. The Ministers noted that Indian investments in Africa have surged with major investments having taken place in the telecommunications, Information Technology (IT), energy, engineering, chemicals, pharmaceuticals and automobiles sectors. India's current investments in Africa is estimated to be over US $50 billion. We also note that inspite of growing trends in investment flows between India and Africa, the existing investment levels do not reflect the true potential. There is a vast potential for accelerating investment flows in the potential sectors of cooperation including in. Agriculture including Agro-processing, Pharmaceuticals, Textiles, Mining, Petroleum and Natural Gas, Information Technology and Information Technology Enabled Services (IT & ITES), Gems and Jewellery, Core Infrastructure including Roads and Railways.

(i) Six Gulf Cooperation Council (GCC) countries ( Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and United Arab Emirates), (ii) Six West Asian countries (Iraq, Israel, Jordan, Lebanon, Yemen and Syria) and

Chapter-6

(iii) Six North African countries (Algeria, Egypt, Libya, Morocco, Sudan and Tunisia). India’s total trade with WANA countries during 2013-14 was US$ 191.29 billion (25.08% of India’s total trade with the World) as compared to US$ 203.17 billion in 2012-13 (25.68% of India’s total trade with the World). While India’s total exports to WANA countries in 2013-14 were US $ 61.77 billion, India’s imports were US$ 129.51 billion during the same period i.e India is in a trade deficit viz a viz WANA countries. India’s share of exports to WANA countries as a percentage of India’s total exports to the

world was of the order of 19.76% in 201314. Further, WANA region’s share in India’s total imports from the World accounted for 28.77% in 2013-14. Between 2012-13 and 2013-14 both our exports to and import from WANA countries have declined @ 4.58% and 6.44% respectively. The major items of decline in our exports and import to the WANA region were gold, diamond jewellery and crude oil & products. The United Arab Emirates (UAE) ranks first among the destinations for India’s exports in the WANA region and among the GCC countries. The other major destinations in the WANA region include Saudi Arabia, Israel, Oman and Egypt. The details of bilateral trade between India and countries of WANA Region during 201213 and 2013-14 are given in the table below.

Table 6.28 Trade between India and WANA Region during 2012-13 and 2013-14

US$ Million

Country

2012-2013 Exports

ALGERIA

Imports

2013-2014(P)

Total Trade

Trade Balance

Exports

Imports

Total Trade

Trade Balance

1,089

684

1,772

405

1,069

861

1,930

208

603

665

1,268

-61

642

565

1,207

EGYPT A RP

2,897

2,553

5,451

344

2,564

2,389

4,953

175

IRAQ

1,278

19,247

20,525

-17,969

916

18,519

19,435

-17,603

ISRAEL

3,740

2,357

6,097

1,384

3,747

2,312

6,059

1,435

JORDAN

1,001

942

1,943

1,596

618

2,214

977

KUWAIT

1,061

16,588

17,649

-15,527

1,063

17,154

18,217

-16,090

LEBANON

251

281

221

293

331

256

LIBYA

215

1,835

2,050

-1,620

288

452

739

-164

MOROCCO

427

1,309

1,736

-882

386

895

1,280

-509

BAHARAIN IS

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Annual Report 2013-14

Country

2012-2013 Exports

Imports

2013-2014(P)

Total Trade

Trade Balance

Exports

Imports

Total Trade

Trade Balance

2,599

2,010

4,609

590

2,819

2,954

5,774

-135

QATAR

687

15,693

16,380

-15,006

988

15,729

16,717

-14,741

9,786

33,998

43,784

-24,212

12,214

36,536

48,750

-24,321

SUDAN

755

127

882

628

862

436

1,298

426

SYRIA

259

339

178

235

311

158

TUNISIA

299

215

514

274

365

182

36,317

39,138

75,455

-2,822

30,515

29,110

59,625

1,404

1,477

959

2,436

518

1,307

782

2,089

525

64,741 1,38,431 2,03,172

-73,690

61,777 1,29,517 1,91,294

-67,740

SAUDI ARAB

UAE YEMEN REP Total WANA India's Total % Share

3,00,401 4,90,737 7,91,137 -1,90,336 3,12,610 4,50,068 7,62,679 -1,37,458 21.55

28.21

25.68

38.72

19.76

28.78

25.08

49.28

Data Source: DGCIS, Kolkata

Major Commodities of Export to WANA Region during 2013-14 (i) West Asia- GCC Region: India’s Top export commodities to this Region consists of Petroleum (Crude & Products) (26.01%), Gems & Jewellery (25.46%), Transport equipments (7.12%), manufacture of metals (3.77%), machinery and instruments (3.82%), Rice Basmati (3.5%), Electronic Goods (2.58%), RMG Cotton including accessories (2.15%).

Exports of Gems & Jewellery (-34.2%), Electronic goods (-3.83%), Petroleum (Crude & Products) (-3.28%), Machinery & Instruments (-1.87%) and Primary & Semi-finished Iron & Steel (-1.92%) have declined during the period.

(ii) Other West Asia Region: India’s Top export commodities to this Region consists of Rice Basmati (18.42%),

Annual Report 2013-14

Petroleum (Crude & Products) (22.15%), Gems & Jewellery (10.30%), Oil Meals (5.26%), machinery and instruments (5.06%), Drugs Pharmaceuticals & Fine Chemicals (3.84%), Meat & Preparations (3.09%), Electronic Goods (2.24%), manufacture of metals (2.22%), Transport equipments (2.11%).

Manufactures of metals (-34.23%) Drugs, Pharmaceuticals & Fine Chemicals (-6.05%), and Electronic goods (-4.05%)) have declined during the period.

(iii) North Africa Region: India’s Top export commodities to this Region consists of Transport equipments (18.03%), Meat & Preparations (8.78%), machinery and instruments (7.43%), Petroleum (Crude & Products) (6.22%) Drugs Pharmaceuticals & Fine Chemicals (5.19%), Manmade Yarn, Fabrics, Made ups (5.47%), Cotton

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OMAN

(3.08%), Pearls & Semi Precious stones (3.66%), Organic chemicals (1.84%), fertilizer crude (1.23%), Inorganic Chemicals (1.05%).

Yarn, Fabrics, Madeups etc (5.74%), Sugar (4.60%), Plastic & Linoleum Products (4.06%), Electronic Goods (3.48%).

Exports of Petroleum (Crude & Products) (-32.82%), Electronic Goods (-26.52%) Transport Equipments (-21.91%), Manmade Yarn, Fabrics, Madeups (-17.41%) and Sugar (-14.94%), Drugs, Pharmaceuticals & Fine Chemicals (2.46%) have declined during the period.

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Top Commodities of Import from WANA Region during 2013-14 (i) West Asia- GCC Region: India’s Top import commodities from this region consists of Petroleum (Crude & Products) (77.37%), Pearls & Semi Precious stones (6.02%), Gold (5.06%), Organic Chemicals (2.56%), Artificial resins, Plastic Materials etc (1.63%), Metalifers ores & Metal Scrap (1.48%), Non Ferrous Metals (1.06%), Fertilizers Manufactures (0.83%).

Imports of Gold (-47.34%), Inorganic chemicals ( 41.48%), Metalifers Ores & Metal Scrap (-14.18%) and Fertilizers Manufactures (-8.74%) have declined during the period.

(ii) Other West Asia Region: India’s Top import commodities from this region consists of Petroleum (Crude & Products) (85.19%), Fertilizers Manufactures

Imports of Fertilizers Crude (-37.76%), Fertilizers Manufactured (-16.23%), Petroleum (Crude & Products) (-6.86%), Perls Prcus Semiprcs stones ( 11.33%), Electronic goods (-8.06%) and Artfcl Resns, Plstc Matrls etc. (-5.49%) have declined during the period.

(iii) North Africa Region: India’s Top import commodities from this region consists of Petroleum (Crude & Products) (71.12%), Inorganic Chemicals (16.16%), fertilizer crude (5.85%), Metalifers Ores & Scrap (1.3%), Cotton Raw:Comb./Uncomb./ Waste (0.78%), Oil Seeds (0.57%), Fruits & Nuts excl. Cashew Nuts (0.32%).

Imports of Fertilizers Crude (-32.10%), Cotton raw: comb./uncomb./waste (29.33%), Metalifers Ores & Metal Scrap (-22.29%) and Petroleum (Crude & Products) (-21.98%) have declined during the period.

Institutional Arrangements Issues pertaining to trade and economic cooperation are regularly reviewed in Bilaterals, Joint Commission Meetings or Joint Trade & Economic Committee Meetings.

List of JCM/JTECs Chaired by C&IM Sl. Name of Committee No. country 1 Oman Joint Commission 2

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GCC

India- GCC Industrial Conference

Chaired Date of last Meeting Next Meeting by CITM 5th - 6th Sept., 2010 To be scheduled Muscat CITM 3rd Conference took To be scheduled place in 2007 in Mumbai

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Apex trade bodies like CII, FICCI, FIEO, ASSOCHAM etc. sponsor business delegations to facilitate trade with India through the mechanism of Joint Business Council (JBC). The Joint Commissions being steered by Department Of Commerce are given below: Recent developments / initiatives: Two FTAs are currently under negotiations in WANA Division: (i) Bilateral Free Trade Agreement between India and Israel (ii) Multilateral Free Trade between India and GCC

Agreement

a) Free Trade Agreement (FTA) with Israel: The eighth round of negotiations between India and Israel was held in Israel from 24th to 26th November, 2013. Negotiations took place on trade in Goods, Rules of Origin, Customs Procedure, and Movement of Natural Persons. Round nine is to be held in New Delhi.

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Next Meeting To be scheduled To be scheduled To be scheduled To be scheduled Not being scheduled in view of ongoing FTA negotiations with Israel

Free Trade Agreement (FTA) with GCC (Gulf Cooperation Council) countries: After obtaining the mandate from the Trade and Economic Relations Committee (TERC) for negotiating an FTA with the GCC (comprising of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and UAE), negotiations commenced with GCC. Two rounds of negotiations have been held so far in 2006 and 2008. No round could take place in the last 5 years since GCC has deferred its negotiations with all countries and economic groups and is currently reviewing its negotiations with all countries and economic groups.

IX. International Trade Organizations (a)

World Trade Organization (WTO)

The Doha Round of trade negotiations is continuing in the WTO since the year 2001. In 2013 there were intense negotiations on harvesting an early outcome on some of the issues of the Doha Development Agenda (DDA). The efforts made by developed

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Sl. Name of Committee Chaired Date of last Meeting No. country by 3 Jordan Joint Trade & C&IM 21-23 Aug., 2006 Economic Committee New Delhi 4 Algeria Joint Commission C&IM Oct., 2003, New Delhi 5 Morocco Joint Commission C&IM 29th April, 2011, New Delhi 6 Syria Joint Commission C&IM 10th June 2010, Damascus 7 Israel Joint Trade & C&IM 13-14, Jan., 2004, Economic Committee Tev Aviv

Chapter-6

countries centred on a Trade Facilitation Agreement. India and other developing countries worked together to ensure that other issues of interest to developing countries, including the Least Developed Countries (LDCs), also formed a part of any package identified for an early outcome. There were initial hiccups but the firmness shown by India and other developing countries led to the realization that no early harvest was possible without including such issues. After protracted negotiations in the Doha Round yielding little results for almost a decade, consensus was reached to negotiate a small package consisting of Trade Facilitation, some elements of agriculture and development/ LDC issues for an early outcome in the Ninth Ministerial Conference of the WTO to be held in December 2013 in Bali, Indonesia. Ninth Ministerial Conference of the WTO The Ninth Ministerial Conference of the WTO was held in Bali, Indonesia from 3 to 7 December 2013. A Bali Package consisting of a Trade Facilitation Agreement, some agriculture and development/LDC issues, was agreed in the Conference making it the first delivery under the Doha Development Agenda (DDA). The Bali Declaration also calls for the finalisation of a Work Program to conclude other issues of the DDA. In the area of agriculture, which is very important for the developing countries, the proposal submitted by G-33, a group of developing countries in the WTO relates to updating the rules concerning public stockholding for food security so that public stockholding programmes for food security purposes do not run afoul of current trade

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rules. Though there is no bar on such programmes in the rules, the support is considered as trade-distorting agricultural support if the foodstuffs for the public stockholding programmes are acquired at administered prices. Such support has to be kept within 10% of the value of production of the product in question. The G-33 proposal was floated to ensure that the limitation of 10% cap does not constrain procurement and food aid programmes in developing countries. A solution to the problem could not be negotiated prior to the Bali Ministerial Conference. In Bali, Ministers approved an interim mechanism, until a permanent solution is found, with some notification and transparency provisions. The interim mechanism stipulates that WTO Members will not challenge the compliance of a developing member with their obligations under the WTO Agreement on Agriculture in relation to support provided for traditional staple food crops in pursuance of public stockholding programmes for food security purposes, if they are consistent with the existing rules. The decision also mandates an agreement for a permanent solution on the issue of public stockholding for food security purposes for adoption by the 11th Ministerial Conference. Other Ministerial Decisions in the agriculture area relate to the export competition pillar and the administration of agricultural quotas. The proposals on both these issues were put forward by the G-20 group of developing countries in the WTO, of which India is also a member. The Ministerial Declaration on Export Competition reaffirms the mandate of the Hong Kong Ministerial Declaration

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of 2005 for eliminating all forms of export subsidies as a priority issue for the postBali work programme. The situation will be reviewed at the 10th Ministerial Conference of the WTO.

An important outcome of the Bali Ministerial Conference was the Ministerial Decision for an Agreement on Trade Facilitation. This Agreement is aimed at simplifying customs procedures by reducing costs and improving their speed and efficiency. It will be a legally binding agreement. The objectives are: to speed up customs procedures; make trade easier, faster and cheaper; provide clarity, efficiency and transparency; reduce bureaucracy and corruption, and use technological advances. It also has provisions on goods in transit, an issue particularly of interest to landlocked countries seeking to trade through ports in neighboring countries. The Agreement also involves assistance for developing and least developed countries to update their infrastructure, train customs officials, or for any other cost associated with implementing the agreement. It will increase trade flows and revenue collection, create

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The Ministerial Decision on Duty-Free, QuotaFree access says that countries that have not done so for at least 97% of products “shall seek to” improve the number of products covered. Other Ministerial Decisions were on simplified preferential rules of origin for least developed countries, operationalization of a waiver for preferential treatment to services and services suppliers of LDCs and a “monitoring mechanism” consisting of meetings and other methods for monitoring special treatment provided to developing countries. The Ministerial Decision on Cotton reaffirms the importance of pursuing progress in the negotiations relating to cotton. Ministers agreed that a dedicated discussion would be held on a bi-annual basis to examine relevant trade-related developments across the three pillars of Market Access, Domestic Support and Export Competition in relation to cotton. The dedicated discussions are to consider in particular all forms of export subsidies for cotton, all export measures with equivalent effect, domestic support for cotton and tariff measures and non-tariff measures applied to cotton exports from LDCs in markets of interest to them. Developments in Other Areas Services Waiver A ‘services waiver’ was adopted in the WTO's Eighth Ministerial Conference in December 2011. It allows WTO members to provide preferential treatment to services and services suppliers of LDCs. A decision for the expeditious and effective operationalization of a ‘services waiver’ was taken as part of

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The Ministerial Decision on agricultural Tariff Rate Quotas (TRQs) is for tighter disciplines on TRQ administration. It envisages a number of measures for sharing information and monitoring how quotas are used. If a quota is persistently under-filled, the importing government would have to apply one of a prescribed set of methods for administering quotas aimed at removing impediments. Members have agreed on a combination of consultation and provision of information when quotas are under-filled.

a stable business environment and attract foreign investment.

the Bali Package during the Ninth Ministerial Conference in December 2013 [WT/MIN(13)/ W/15 dated 5th December 2013]. This says that the Council for Trade in Services shall convene a High-level meeting six months after the submission of an LDC collective request identifying the sectors and modes of supply of particular export interest to them. In that meeting, developed and developing Members, in a position to do so, shall indicate sectors and modes of supply where they intend to provide preferential treatment to LDC services and service suppliers.

Chapter-6

Trade in Services Agreement (TISA) The Trade in Services Agreement (TISA) earlier known as ‘International Services Agreement’ (ISA) is a plurilateral approach to services proposed by the US, the EU, Australia and other members also known as Really Good Friends of Services (RGF). The negotiations involve more than 40 countries contributing around 70% of Global Trade in Services. India, Brazil, South Africa and a host of developing countries do not support this approach. However, China, which was earlier opposing this approach, has now shown interest in joining TISA. Questions relating to the impact of this approach on multilateralism and the Doha Round of trade negotiations remain unanswered. It can be a disincentive to the conclusion of a multilateral agreement on services within a single undertaking as envisaged in the DDA. Further, it has a very large coverage and scope. Services Conclave (12 & 13 November 2013) The Department of Commerce, in association with CII, SEPC & FIEO, organized a two-day

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‘Services Conclave’ focusing on the challenges, opportunities and issues of services export from India. It was inaugurated by the Union Minister of Commerce & Industry, Shri Anand Sharma. Panel discussions were held on the various sub-sectors/issues related with the services sector. The conclave touched upon varied aspects relating to Logistic Services, Professional Services (Accountancy, Architecture and Management Consultancy Services), IT/ITeS, Telecom, Medical & Health related Services, Tourism Services, Creativity and Entertainment Services and the issues related with the availability of Data on Trade in Services. As a follow–up of the services conclave, the Department has taken the following decisions: •

To make the services conclave an annual event

•

A Task force on Services Sector Export, consisting of officers of the Department of Commerce and other concerned Ministries/ Departments, representatives of Industry and Industry and experts, has been constituted on 10th February, 2014.

•

Proposed to set up a National Services Competitiveness Council (NSCC) on the lines of the National Manufacturing Competiveness Council (NMCC).

A New Expanded Duty Free Tariff Preference (DFTP) Scheme for Least Developed Countries (LDCs) One of the elements of the Hong-Kong Ministerial Declaration of December 2005 was to extend Duty Free Quota Free (DFQF) access to the Least Developed Countries (LDCs). India is the first developing country

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being some of them. Overall, this initiative by India would strengthen the country’s position in the WTO on issues relating to LDCs and is expected to send a strong signal to major developed countries which are yet to comply with the Hong Kong Ministerial mandate to adopt similar measures. In the process, India looks forward to greater and fruitful engagement with the LDC trading partners.

Subsequently, to fully meet the obligations under the Hong Kong Ministerial mandate of 2005 and also in response to requests from some of the LDCs for additional product coverage under the duty free list and simplification of the Rules of Origin procedures, the Department of Commerce has expanded the Scheme. Effective from 1st April, 2014, the DFTP scheme will provide duty free market access on 96.4 % of India’s tariff lines and 2% of the lines would be enjoying preferential duties. Only 1.6% of the tariff lines have been retained in the Exclusion List, with no duty concessions. The new expanded Scheme will also bring in several procedural simplifications with reference to the Rules of Origin.

Information Technology Agreement

At present, 31 out of 48 LDCs have become beneficiaries to the scheme. Out of this, 21 LDC beneficiaries are from Africa. These 21 countries include Benin, Burkina Faso, Burundi, Comoros, Central African Republic, Eritrea, Ethiopia, Gambia, Lesotho, Liberia Madagascar, Malawi, Mali, Mozambique, Rwanda, Senegal, Somalia, Sudan, Uganda, Tanzania and Zambia. The new and expanded DFTP Scheme would provide improved market access to the beneficiary countries as well as to the new entrants, the Republic of Yemen and Haiti

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India is a signatory to the Information Technology Agreement (ITA) (or ‘ITA-1’), a plurilateral agreement of the WTO. As on date, there are altogether 75 member signatories, including 27 EU member countries, accounting for about 97 per cent of the world trade in Information Technology (IT) products. India joined the ITA on 25 March 1997. During the last few years, some of the developed country members of the ITA, namely, USA, European Union and Japan, have proposed to broaden the scope and coverage of the ITA (referred to as ‘ITA-2’). These proposals basically relate to increasing the coverage of IT products on which customs duty would be bound at zero; addressing nontariff measures; and expanding the number of signatory countries to include new signatories such as Argentina, Brazil and South Africa. The proponents of ITA expansion have prepared and circulated a consolidated list containing IT products (combining products of interest of all proponents of ITA 2) on which tariff reductions are being sought. This was discussed intensively in WTO meetings during the last year. India’s experience with the ITA has been t discouraging; it almost wiped out the IT

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to have extended this facility to LDCs. India announced the Duty Free Tariff Preference (DFTP) Scheme for LDCs in the year 2008. The Scheme was announced to give support to the LDCs in their trade initiatives and granted duty free access on about 85% of India’s total tariff lines and preferential access (Positive List) on about 9% of tariff lines. Only 6% tariff lines were retained in the Exclusion List.

Chapter-6

industry from India. The real gainer from that agreement has been China which raised its global market share from 2% to 14% between 2000-2011. The Department of Electronics and Information Technology (DeiTY) has been taking the stand that ITA-1 has not benefitted India as far as manufacturing in the domestic hardware industry is concerned. The same view has been expressed by industry during stakeholder consultations jointly held by the Department of Commerce and DeiTY. In light of the recent measures taken by the Government to build a sound manufacturing environment in the field of Electronics and Information Technology, this is the time for India to incubate its industry rather than expose it to undue pressures of competition. Accordingly, it was decided not to participate in the ITA expansion negotiations at present. India and the Government Procurement Agreement (GPA) The Government Procurement Agreement (GPA) is a plurilateral agreement in the WTO. India has observer status in the WTO GPA since February 2010. A comprehensive study on various elements of the GPA was conducted by the Department of Commerce through the Centre for WTO Studies, Indian Institute of Foreign Trade, New Delhi. Trade Remedies One of the issues being discussed in the WTO Committee on Safeguards, Subsidies and Countervailing Measures (SCM) relates to the phasing out by India of export subsidies for the textiles and apparel sector. The US has sought information on Indiaâ&#x20AC;&#x2122;s plan to phase out export subsidies in the sector. India is committed to its WTO obligation to phase

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out export subsidies for this sector by 2018; however, it is awaiting some clarifications from the Committee, failing which it would be difficult to plan the phasing out modalities and hence its consequential impact on the implementation of the obligation. In meetings of the Committee India has raised questions on the WTO-inconsistent subsidy program of the US for its renewable energy programs. Timely action by the Department of Commerce has lead to either withdrawal of the trade remedial actions on India or reduced their impact. As a result, none of the investigations against Indian products have led to imposition of penultimate duty on account of Adverse Facts available. Industry awareness programmes on appropriate and timely action and co-ordination among various stakeholders for least adverse impact on account of trade remedial measures by other countries have been initiated and organised by the Department of Commerce. Disputes India has so far been a complainant in 21 cases, a respondent in 23 cases and a third party in more than 90 disputes. The status of three ongoing WTO disputes concerning India is indicated below: i.

US complaint on Import restrictions by India on certain agricultural products including Poultry and Poultry products (DS430):-

In this case, Panel hearings have been completed. ii. Indiaâ&#x20AC;&#x2122;s complaint on the Exorbitant Countervailing duty (Anti-Subsidy duty

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or CVD) imposed by the US on Certain Hot Rolled Carbon Steel Flat Products (DS436):In this case, Panel hearings have been completed and the draft Interim Panel report has been received.

The US sought consultations under the WTO DSU Mechanism aggrieved by the Domestic Content Requirements (DCR) under Phase I and Batch I of Phase II of the Jawaharlal Nehru National Solar Mission (JNNSM) program of the Ministry of New and Renewable Energy. Consultations with the US were held in March 2013 and 2014. Non-Tariff Measures (NTMs) Over the last couple of decades the world has witnessed a rapid expansion of global trade and reduction in tariff rates both through the multilateral arrangement under the WTO as well as the Free Trade Agreements (FTAs). At the same time, developed countries are increasingly resorting to the use of Non-Tariff Measures (NTMs) to protect their domestic industries. NTMs are measures on international trade that are not in the form of a tariff or a tax. These measures include, inter alia, trade-related procedures, technical regulations, standards, import or export licensing systems, etc. On the import side, we are seeking to develop a regulatory environment that would encourage a regime of quality production;

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In addition, wherever India’s export interests are affected, the Department of Commerce raises issues in every regular SPS and TBT Committee Meetings of the WTO to get suitable redressal of our export concerns. Global Value Chains The much talked about issue in the circles of international trade in recent times has been ‘global value chains’ (GVCs). In fact, what started as regional supply chains in East Asia by Japanese investors have today become a phenomenon that countries, both developed and developing cannot afford to ignore. Especially for the policy makers in the developing countries, linking into GVCs has emerged as the new development challenge. GVCs have thus become a prominent item in the agenda of discussions not only in the WTO, but at other fora as well, especially the G20.

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iii. US complaint on Domestic Content Requirements (DCR) in Phase I and Phase II of the Jawaharlal Nehru National Solar Mission (JNNSM) program of MNRE (DS456):-

this would also boost exports. On the export side, a web based trade portal has been developed which provides access to a database on SPS/TBT notifications (which may result into NTMs) notified to the WTO by the Members of the WTO. It includes information on tariffs at HS 8 digit level, applicable SPS/TBT rules and regulations, preferential tariff rates (for countries with which India has trade agreements) and rules of origin. This is to provide information to our exporters about the regulatory regime of other countries. The Department of Commerce is regularly holding meetings with the Departments/Organizations concerned for the development of standards to protect consumers from inferior and sub-standard imports and to provide a competitive edge to our exports.

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A global value chain can simply be understood as the sequence of all functional activities beginning from research and development activities, product designing, sourcing of primary products, production of intermediate products, final assembly of product, packaging, branding and marketing of the product etc, required in the process of value creation involving more than one country. GVC for a particular product may therefore not only span over countries but also span across different industries including services. The emergence of GVCs also has implications for trade negotiations at the WTO. Main concerns of India pertain to agriculture subsidies, the growing importance of private standards in GVCs, labour standards, IPRs and competition issues, all of which could probably go against the interests of developing countries. In light of these developments, the Department is also conducting a study on various aspects of GVCs through the Centre for WTO Studies, IIFT, New Delhi, mainly to assess India’s present position and level of participation in GVCs and explore policy options to further the country’s participation in key sectors, create a strong presence in possible regional supply chains and possibilities of functional upgrading , all of which would increase the extent of value-addition in exports and serve the development objectives as well.

countries are a party. Accordingly, the IndiaJapan (both Goods and Services) FTA and the India-Malaysia (both Goods and Services) FTA were notified to the WTO. The two FTAs were examined by the Committees concerned in the WTO and India responded to queries of other Member countries. (b) Economic and Social Commission for Asia & the Pacific (ESCAP) ECONOMIC AND SOCIAL COMMISSION FOR ASIA & THE PACIFIC (ESCAP) India is one of the founding members of ESCAP, the regional development arm of the United Nations, which serve as the main economic and social development centre for the United Nations in Asia and Pacific. With a membership of 62 Governments, 58 of which are in the region, and a geographical scope that stretches from Turkey in the west to the Pacific island nation of Kiribati in the east, and from the Russian Federation in the north to New Zealand in the south, ESCAP is the most comprehensive of the United Nations five regional commissions. It is also the largest United Nations body serving the Asia-Pacific region. Established in 1947 with its headquarters in Bangkok, Thailand, ESCAP seeks to overcome some of the region’s greatest challenges. It carries out work in the following areas: •

Macroeconomic Development

Notification of FTAs to the WTO

•

Statistics

One of the notification obligations of member countries in the WTO is to notify the Free Trade Agreements (FTAs) to which Member

•

Subregional activities for development

•

Trade and Investment

•

Transport

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Policy

and

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• • •

Environment and sustainable development Information and Communications Technology and Disaster Risk Reduction Social Development

•

• •

•

Issues that all or a group of countries in the region face, for which it is necessary to learn from each other; Issues that benefit from regional or multi-country involvement; Issues that are transboundary in nature, or that would benefit from collaborative inter-country approaches; Issues that are of a sensitive or emerging nature and require further advocacy and negotiation.

Annual Session of ESCAP The Commission meets annually at the ministerial level to discuss and decide on important issues pertaining to inclusive and sustainable economic and social development in the region, to decide on the recommendations of its subsidiary bodies and of the Executive Secretary, to review and endorse the proposed strategic framework and programme of work, and to make any other decisions required, in conformity with its terms of reference. The 69th Session of ESCAP was held in Bangkok, Thailand from 25th April to 1st May, 2013. The theme for the Session was “Opportunities to build Resilience to Natural Distars and Major Economic Crises”. The Hon’ble Minister of State for Commerce

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India’s contribution to ESCAP The delivery of ESCAP’s programmes is supported by the regional institution and the sub-regional offices. India has worked in close cooperation with ESCAP during the year. India has also committed continued financial support to the following regional institutions of ESCAP:

 Asian and Pacific Centre for Transfer of Technology (APCTT), New Delhi, India;  Asian and Pacific Training Centre for Information and Communication Technology for Development (APCICT), Incheon, Republic of Korea;  Statistical Institute for Asia and Pacific (SIAP); Chiba, Japan; and  Asia and Pacific Centre for Agriculture and Engineering Machinery (APCAEM), Beijing, China

Establishment of a Sub Regional Office in India A newly added dimension in our partnership with UN-ESCAP is the establishment of UN-ESCAP’s Sub-Regional Office (SRO) for South and South West Asia in New Delhi with financial assistance to the tune of US$ 1,54,000 provided by Govt. of India. Out of this US$ 75000/- would be as a one time grant for 2012 only and US$ 79000/-would be recurring grant per annum as India’s contribution for the office The office has become functional from December 15,2011.

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ESCAP focuses on issues that are most effectively addressed through regional cooperation, including:

and Industry led the Indian delegation and delivered India’s Policy Statement at this Session.

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ESCAP has decided to establish a Sub-Regional Office (SRO) for South & South-West Asia in New Delhi. India has accepted the same and approved financial support of US$ 75000 as one time grant aid and US$ 79000/- recurring grant per annum for the office. The office has now become functional in December, 2011. The main activities of SRO will be to (i) implement the Commission’s agenda at the sub-regional level by serving as a link between sub-region and Commission headquarters; (ii) promote and support specific sub-regional priorities and programmes concentrating on the priority sectors of member States within the sub-region; (iii) operate as sub-regional nodes for knowledge management and networking; (iv) spearhead the delivery of technical assistance activities and act as the Commission’s implementing arm in the subregion; (v) establish close working relations with United Nations country teams with in the sub-region and promote the coordination of United Nations systems activities at the subregional level. The SRO can build synergies and cooperation at the level between United Nations agencies while drawing from the strong regional presence of the Commission, including its wide-ranging technical skills and convening power; (vi) build strong partnerships and network with other relevant actors in the sub-region, including other sub-regional intergovernmental bodies, to promote sub-regional cooperation within a regional framework.

United Nations Conference on Trade and Development (UNCTAD) aims at integration of developing countries into the world economy. UNCTAD serves as the focal point within United Nation for the integrated treatment of trade and development and the interrelated issues in the areas of finance, technology, investment and sustainable development. Three pillars of UNCTAD’s existing mandate are: a) independent policy analysis; b) consensus building; and c) technical assistance.

During the year 2013-14, SRO organized the following events (I) High-level Policy Dialogue on Development Challenges facing the Sub region, (II) Policy Dialogue on Value Chains for Inclusive Development Lessons and Policies, (III) Regional Ministerial Conference

The Agreement establishing the Global System of Trade Preferences (GSTP) among Developing countries was signed on April 13, 1988 at Belgrade following the conclusion of the First Round of Negotiations. The GSTP came into being after a long process of

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on Transparent and accountable publicprivate partnerships enable inclusive and sustainable growth (IV) Expert Group Meeting on Inclusive Development and Regional Cooperation in South and South-West Asia and (V) High-level Sub- regional Forum on Accelerating Achievement of the Millennium Development Goals in South Asia (c)

nited Nations Conference on Trade U and Development (UNCTAD)

The Ministerial Conference, which meets every four years, is UNCTAD’s highest decision making body and sets priorities and guidelines for the organization and provides an opportunity to debate and evolve policy consensus on key economic and development issues. The XIII Ministerial Conference was held in Doha, Qatar from 20 -26 April, 2012. D. Global System of Trade Preferences (GSTP)

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The current round of GSTP negotiations, also known as “São Paulo Round” was launched in 2004 with 22 participating countries, on the occasion of the UNCTAD XI Quadrennial Conference in Sao Paulo in Brazil. At the end of the negotiations, Ministerial Modalities were adopted on 2 December, 2009 wherein Ministers agreed to modalities based on a tariff reduction of at least 20 percent on at least 70 percent of all dutiable tariff-lines.

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Members who were in the process of their WTO accession namely, Algeria and Iran were to be given specific flexibilities. The modalities on market access adopted by the Ministers are as under: •

Across-the-board, line-by-line, linear cut of at least 20% on dutiable tariff lines;

•

Product coverage to be at least 70% of dutiable tariff lines;

•

Product coverage shall be 60% for participants having more than 50% of their national tariff lines at zero duty level;

•

Tariff cuts shall be made on the MFN tariffs applicable on the date of importation. Alternatively, participants may choose to apply the cuts on the MFN tariffs applicable on the date of conclusion of the Third Round;

•

The Negotiating Committee shall also consider proposal for revision of the GSTP rules of origin.

Based on these modalities, intensive negotiations were held in 2010 for finalisation of the schedules of Members. During this period, Cuba, Egypt, India, Indonesia, Korea, Malaysia, Mercosur and Morocco submitted their schedules and bilateral negotiations were held to finalise the schedule. It is significant to note that India unilaterally offered a tariff reduction of 25 percent on 77 percent of its tariff lines for Least Developed Countries (LDCs). A Ministerial Meeting of the GSTP Negotiating Committee was held on 15 December, 2010 in Foz do Iguacu, Brazil for signing of the “Final

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negotiations during the Ministerial Meeting of the Group of 77, notably at Mexico City in 1976, Arusha in 1979 and Caracas in 1981. The Ministers of Foreign Affairs of the Group of 77 in New York set up the GSTP Negotiating Committee in 1982. The New Delhi Ministerial meetings, held in July 1985, gave further impetus to the GSTP negotiation process. The Brasilia Ministerial Meeting held in May 1986 launched the First Round of GSTP Negotiations. At the conclusion of the First Round in April 1988 in Belgrade, the GSTP Agreement was signed on April 13, 1988. The Agreement entered into force on 19th April 1989. Forty-four countries have ratified the Agreement and have become participants. The GSTP establishes a framework for the exchange of trade concessions among the members of the Group of 77. It lays down rules, principles and procedures for conduct of negotiations and for implementation of the results of the negotiations. The coverage of the GSTP extends to arrangements in the area of tariffs, para-tariff, non-tariff measures, direct trade measures including medium and long-term contracts and sectoral agreements. One of the basic principles of the agreement is that it is to be negotiated step by step improved upon and extended in successive stages.

Chapter-6

Act Embodying the Results of the Sao Paulo Round” and the “Sao Paulo Round Protocol on the Agreement on GSTP”. The Ministers or Heads of the Delegations of Members who have submitted their final schedules namely Cuba, Egypt, India, Indonesia, Korea, Malaysia, Mercosur and Morocco signed the two documents. India was represented by H.E. Mr. B.S. Prakash, Ambassador of India to Brazil. So far, 8 out of 44 member countries, including India, have signed the protocol. Of these 8 countries, three countries, viz. India, Malaysia and Cuba have ratified it. The Cabinet Committee on Economic Affairs (CCEA) has approved implementation of India’s Schedule of Concessions under the Third Round of negotiations.

During the Second Session of the Ministerial Council at Goa on October 26, 2007 the following important decisions were taken:

The schedules of concessions under the Third Round of negotiations will be implemented thirty days after a minimum of four participants ratify their schedules and inform the GSTP Secretariat. The tariff concessions will be implemented amongst such four participants and other participants will avail of the concessions after they ratify their schedules.

Pursuant to the directions of the Ministers, the Standing Committee initiated negotiations in the areas of tariff concessions with an average of 50% MOP on 50% of tariff lines along with framework agreements on (i) trade facilitation (ii) trade in services (iii) investments and (iv) non-tariff measures.

Asia Pacific Trade Agreement (APTA)

The Asia-Pacific Trade Agreement (APTA), previously named the Bangkok Agreement, signed in 1975 as an initiative of ESCAP, is a preferential tariff arrangement that aims at promoting intra-regional trade through exchange of mutually agreed concessions by member countries. APTA has six members namely Bangladesh, China, India, Republic of Korea, Lao People’s Democratic Republic and Sri Lanka. ESCAP functions as the Secretariat for the Agreement.

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To launch the 4th Round of Negotiations •

To adopt modalities for extension of negotiations in other areas such as non-tariff measures, trade facilitation, services, and investment

•

A common set of Operational Procedures for the Certificate and Verification of the Origin of Goods for APTA was approved and it was decided that the same would be implemented w.e.f. January 1, 2008; and

•

To explore the possibilities of expanding the membership of the Agreement

To move forward the 4th Round of Negotiations, the 35th Session of the Standing Committee and the 3rd Session of the Ministerial Council were held in Seoul, Republic of Korea on December 13-14, 2009 and December 15, 2009 respectively. Mongolia, which has expressed its interest in acceding to APTA, was also invited to participate as an observer to the Session. Under the 4th Round, the Standing Committee of Participating States has finalised framework agreements in the areas of (i) trade facilitation, (ii) trade in services and (iii) promotion and liberalisation of investments.

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The 42nd and 43rd sessions of the APTA Standing Committee were held in Incheon, Korea on 25-26th October, 2013 and Vientianne, Lao on 26-27 May, 2014 respectively. The Standing Committee has by consensus decided for Mongolia to become the Seventh Participating State of APTA. The formal accession of Mongolia to APTA will take into effect after completion of the provisions prescribed under Article 30(v) of APTA. The 43rd session of the Standing Committee also deliberated on the draft Ministerial Declaration for the 4th Ministerial Council meeting. F.

ay of Bengal Initiative on MultiB Sectoral Technical and Economic Cooperation (BIMSTEC)

The initiative to establish Bangladesh-IndiaSri Lanka-Thailand Economic Cooperation (BIST-EC) was taken by Thailand in 1994 to explore economic cooperation on a sub regional basis involving contiguous countries of South East & South Asia grouped around the Bay of Bengal. Myanmar was admitted in December, 1997 and the initiative was renamed as BIMST-EC. It may be mentioned that the initiative involves 5 members of SAARC (India, Bangladesh, Bhutan, Nepal &

Annual Report 2013-14

Sri Lanka) and 2 members of ASEAN (Thailand, Myanmar). BIMST-EC is visualized as a ‘bridging link’ between two major regional groupings i.e. ASEAN and SAARC. BIMST-EC is an important element in India’s “Look East” strategy and adds a new dimension to (our) India’s economic cooperation with South East Asian countries. A Free Trade Agreement among the member states of BIMSTEC is being negotiated. The BIMSTEC Trade Negotiating Committee (TNC) has had 19 sessions of negotiations. The negotiations are spread over the areas of (i) tariff concessions on trade in goods, (ii) customs cooperation, (iii) services and (iv) investments. At the 18th meeting of the TNC parties reached agreement on the text of the Agreement on Trade in Goods as well as the text of the Rules of Origin and the Operational Certification Procedures and the text of the Agreement on cooperation and mutual assistance in customs matters. At the 19th meeting of the TNC, which was held in Bangkok on 21-23 February 2011, parties agreed to conclude the Agreement on Trade in Goods within 2011 and implement the tariff concessions from July 1, 2012. All parties are to finalise the schedule of concessions and exchange it with other parties. Negotiations will continue on the Agreements on Services and Investment. BIMSTEC Summit leaders met for the Third BIMSTEC Summit in Nay Pyi Taw, Myanmar from 1-4 March, 2014 and in their declaration directed the BIMSTEC TNC to expedite its work for the conclusion of the Agreement on Trade in Goods by the end of 2014, and to continue its efforts for early finalization of the Agreement on services and Investment. As of May, 2014; there have been 19 rounds of negotiations under the TNC.

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Commercial Relations, Trade Agreements and International Trade Organisations

Offers of further tariff liberalisation in goods have also been exchanged. The Standing Committee is also considering a framework agreement on non-tariff measures and a revision of the APTA rules of origin.Under the Fourth Round of negotiations, participating states have agreed to offer concessions at an average margin of reference (MoP) of 40% on 40% of their tariff lines. Negotiations among participating states on concluding tariff concessions continue.

RICS (Brazil, Russia, China, India and B South Africa) Trade Ministers meeting

Chapter-6

At the First Economic and Trade Ministers’ Meeting of BRICS on April 13, 2011, in Sanya, China, the Ministers agreed to establish a contact group entrusted with the task of proposing an institutional framework and concrete measures to expand economic cooperation among BRICS and with other development countries, within a South-South perspective. To implement the consensus of the Ministers, the BRICS members have established the Contact Group for Economic and Trade Issues (CGETI). The Second Meeting of the BRICS Trade and Economic Ministers was held in New Delhi on 28th March, 2012. The Ministers agreed to coordinate their positions at the WTO and in other multilateral fora. Ministers also agreed that officials should work together to ensure that BRICS members enhance their trade, including of higher value added manufactured products, to support industrialization and employment in their countries. The Third Meeting of the BRICS Trade Ministers was held in Durban, South Africa on 26 March 2013. The BRICS Trade Ministers held open and constructive discussions under five main headings viz. (1) Global Economic Development;(2) The WTO and Doha Development Agenda;(3) Cooperation in other multilateral fore where trade and investment issues arise such as GZO, UNCTAD, UNDP, UNIDO and WIPO amongst others; (4) Intra-BRICS cooperation; and (5) BRICS Partnership to support Africa’s Development Agenda by strengthening their cooperation in the search for synergies for investment in Africa’s infrastructure, agriculture and manufacturing sectors.

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The Ministers also endorsed the BRICS Trade and Investment Cooperation Framework developed by the contact group for Economic and Trade Issues (CGETI) and instructed the CGETI to implement the said Framework and build on it in future. The Ministers also welcomed the launch of the BRICS Business Council that will bring together business associations from each of the BRICS countries and manage engagement between the business communities on an ongoing basis. The BRICS Seminar on Investment Agreements was held on 21st November, 2013 and the 5th meeting of the BRICS CGETI was held on 22nd November, 2013 at Pretoria, South Africa. The 6th meeting of the BRICS CGETI was held on 26-27 May, 2014 in Brasilia wherein a Communique for Trade Ministers was drafted and a document on Trade and Investment Facilitation Plan was adopted. The Communique highlights the importance of coordination of the BRICS in the multilateral negotiations at the WTO. The Trade Ministers meeting would be held on 14 July, 2014 in Fortaleza, Brazil just prior to the BRICS Summit on 15-16 July, 2014. H.

IBSA (India Brazil and South Africa)

IBSA is a trilateral development initiative between three major democracies from three different continents to promote cooperation and coordination on global issues relevant to these developing countries. Formally established on June 6, 2003, through the “Brasilia Declaration”, IBSA represents a major initiative of policy coordination aiming at strengthening multilateralism, reinvigorating south-south cooperation ad fostering democratization of decision making

Annual Report 2013-14

within major international instances. IBSA Trade Ministers frequently meet to exchange views on issues like WTO Doha Round.

I. Regional Comprehensive Economic Partnership (RCEP) Agreement among ASEAN + 6 (Australia, China, India, Japan, Korea and New Zealand) The Association of South East Asia Nations (ASEAN) and its FTA Partners (Australia, China, India, Japan, South Korea and New Zealand) have been deliberating on a Regional Economic Architecture for East Asia for greater integration. The ASEAN Report on the Emerging Regional Architecture resulted in the ASEAN Framework on a Regional Comprehensive Economic Partnership (RCEP) which was adopted by the Leaders of ASEAN at the 19th ASEAN Summit held in November 2011 at Bali, Indonesia. During the 20th ASEAN Summit held in Cambodia in April 2012, ASEAN States agreed to move towards establishing the Regional Comprehensive Economic Partnership Agreement (RCEP) involving ASEAN and its FTA partners.

Annual Report 2013-14

‘The Guiding Principles and Objectives for Negotiating RCEP’ adopted by the Economic Ministers in August, 2012 lays down some principles like broader and deeper engagement with significant improvements over the existing FTAs while recognising the individual and diverse circumstances of countries; facilitate countries engagement in global and regional supply chains; taking into account the different levels of development of participating countries, etc. It also identifies the areas of negotiations such as goods, services, investment, economic and technical cooperation, intellectual property, competition, dispute settlement with a flexibility to identify other areas. India is participating in the RCEP negotiations with a clear understanding of her strengths and concerns and to try to address the same when the modalities are being finalised. The RCEP negotiations were launched in May, 2013. Four rounds of negotiations have been held so far. The 4th Round was held from 31March – 4April, 2014 at Nanning, China. J.

Indian Ocean Rim Association (IORA)

Established in Mauritius in March 1997 with the primary objective of promoting “sustained growth and balanced development of the region and of its Member States, and create common ground for regional economic co-operation”, the IORA(formerly known as IOR-ARC) is the apex pan-Indian Ocean multilateral forum with its membership open

167

Commercial Relations, Trade Agreements and International Trade Organisations

India (Department of Commerce) hosted the 10th meeting of the IBSA Working Group on Trade and Investment (WGTI) on 23rd May, 2013 at New Delhi. The WGTI reviewed the work and progress made since the 9th meeting held on 11th September, 2012 in South Africa. The WGTI also discussed developments in the intra-IBSA trade &investment, trade target, composition of trade, implementation of the MoU on Standards, Technical Regulation & Conformity Assessment, MSME Cooperation, Cooperation in Tourism Sector and update on the IBSA PTAs. IBSA has set intra-IBSA trade target of $ 25 billion by 2015.

The objective of launching RCEP negotiations is to achieve a modern, comprehensive, highquality and mutually beneficial economic partnership agreement among the ASEAN member States and ASEAN’s FTA Partners.

to all sovereign States of the IOR that adhere to the principles and objectives of its Charter. India is one of the founders and key members of IOR-ARC. The 13th meeting of the Council of Ministers of the IORA held on 1st November, 2013 in Perth, Australia has adopted IORA as the new name of the organization. The Ministerial meeting was preceded by meeting of the IORA Working Group on Trade and Investment on 30th October, 2013.

Chapter-6

(k)

imberley K Scheme

Process

Certification

The Kimberley Process (KP) is a joint government, industry and civil society initiative to stem the flow of conflict diamonds (rough diamonds used by rebel movements to finance wars against legitimate governments). Kimberley Process Certification Scheme (KPCS) is an UN mandated (UNGA Resolution 55/56 of 2000 and UNSC Resolution 1459 (2003)) international certification scheme. It

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requires each participant to impose internal control over production and trade of rough diamonds. Trading in rough diamonds with a non-participant is not allowed. All exports of rough diamonds have to be accompanied by a valid KP Certificate stating that diamonds are conflict free. India is one of the founding members of KPCS. KPCS currently has 54 member States including the European Community representing 28 member States. Thus, it has a membership of 81 countries. All major diamond producing, trading and polishing centres are members of KP. Civil Society and industry groups also actively participate in the KP. Chairmanship of KP is rotated on annual basis. India and Belgium have signed a Memorandum of Understanding on 25th November, 2013 at New Delhi to facilitate the KPCS data sharing between the two countries as a pilot project.

Annual Report 2013-14

Centres of Export oriented production: Special Economic Zones (SEZs) and Export Oriented Unit (EOUs)

I. Special Economic Zones Act, 2005 and Special Economic Zones Rules, 2006 Asia’s first EPZ was set up in Kandla in 1965. Seven more zones were set up thereafter. However, the zones were not able to emerge as effective instruments for export promotion on account of the multiplicity of controls and clearances, the absence of world-class infrastructure and an unstable fiscal regime. While correcting the shortcomings of the EPZ model, some new features were incorporated in the Special Economic Zones (SEZs) Policy announced in April 2000. To instill confidence in investors and signal the Government’s commitment to a stable SEZ policy regime and with a view to impart

Annual Report 2013-14

stability to the SEZ regime and thereby generating greater economic activity and employment through the establishment of SEZs, a comprehensive Special Economic Zones Act, 2005, was passed by Parliament in May, 2005. The Act received Presidential assent on the 23rd of June, 2005. The SEZ Act, 2005, supported by SEZ Rules, came into effect on 10th February, 2006, providing simplification of procedures and single window clearance on matters relating to Central and State governments. As a result of this Act and Rules coming into force, it was envisaged that the SEZs would attract a large flow of foreign and domestic investment in infrastructure and production capacity leading to generation of additional economic activity and creation of employment opportunities. The main objectives of the SEZ Act are:

• Generation of additional economic activity;

• Promotion of exports of goods and services;

• Promotion of investment from domestic and foreign sources;

• Creation of opportunities; and

• Development facilities.

employment infrastructure

169

Special Economic Zones (SEZs)

The Special Economic Zones Policy was announced in April 2000 with the objective of making the Special Economic Zones an engine for economic growth, supported by quality infrastructure and an attractive fiscal package both at the Central and State level with a single window clearance. The SEZ concept recognizes the issues related to holistic economic development and provides for development of self-sustaining Industrial Townships so that the increased economic activity does not create pressure on the existing infrastructure.

II.

Amendments in the SEZ Rules, 2006

Chapter-7

The following important amendments have been made to the SEZ Rules, 2006: •

Prescribing minimum built up area for Bio-technology and Gem & Jewellery Sectors;

•

Prescribing minimum processing area for Free Trade Warehousing Zone (FTWZ);

•

Inclusion of specific provisions regarding grant of in-principle approval and its extension;

•

Providing for a lease period of not less than five years as against the earlier provision of lease period being coterminus with the validity of Letter of Approval;

•

Stipulating the Upper limit of the area required for multi product SEZs at 5000 hectares, with the State Governments having the option to prescribe a lower limit;

•

Revising the minimum processing area uniformly at 50% for multi- product SEZs as well as sector specific SEZs;

•

A number of other amendments to delegate powers and to simplify the procedure;

•

SEZ Authority Rules, 2009 has been made for the smooth functioning of zones and SEZ Authority has been set up accordingly.

•

Routing proposal for setting up of SEZ through Development Commissioner, to facilitate developers and for better administrative efficiency.

•

Including all the existing legislation/ rules for generation, transmission and distribution of power. Prescribing a time limit of 10 years for constructing the minimum built up area prescribed under Rule 5.

•

Adding a new provision that once SEZ is notified and becomes operational, the validity of Letter of Approval will continue as long as the SEZ remains notified.

•

Prescribing various forms and procedure for smooth functioning.

•

Making it mandatory to all the developers and units to use the online system for better monitoring as also better facilitation in respect of the users.

•

Type of land to be mentioned in the application form of SEZ;

•

Reimbursement of duty in lieu of drawback for supply of goods to SEZ developers against Indian rupees;

•

Classifying Cities of the country.

•

Promoting IT/ITES SEZs in smaller cities of the country.

•

Term “vacant land” defined for the purpose of SEZs;

•

Clubbing of contiguous existing notified Special Economic Zones notwithstanding that the total area of resultant Special Economic Zones exceeds 5000 hectares

Allowing setting up of FTWZs without any minimum area requirement in the existing SEZs.

•

Paving way for import of prohibited items by a unit in a Special Economic Zone or Developer of the Special Economic Zone

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from a place outside India to the Special Economic Zone with prior approval of the Board of Approval. •

Amending Annexure-II of Special Economic Zone Rules, 2006 to substitute the term “Apparel” mentioned is column (3) against Serial Number 3 of the Annexure by the words “Textiles and Articles of Textiles”. Enabling Board of Approval to extend validity of Letter of Permission of unit beyond 4th year.

•

Making validity of Letter of Approval of a co-developer of SEZ co-terminus with that of the developer.

•

The following amendment to the SEZ Rules, 2006 were notified on 12th August, 2013:-

Minimum Land Area Requirements for setting up of SEZs in various categories has been reduced by half.

To allow greater flexibility and address the intermediate size land tracts falling between different categories, Graded Scale for Minimum Land Criteria has been introduced.

Sectoral broad-banding provisions have been introduced for categories of sectors to encompass similar/ related areas.

IT and ITES SEZs – Minimum land requirement criteria has been Dispensed with.

Annual Report 2013-14

Transfer of Assets by SEZ Units upon their exit.

Vacancy Norms clarified.

III. C urrent status of approvals for setting up of Special Economic Zones Seven Export Processing Zones set up by the Central Government at Kandla (Gujarat), Santa Cruz (Maharashtra), Cochin (Kerala), Noida (U.P.), Chennai (Tamil Nadu), Falta (West Bengal) and Visakhapatnam (Andhra Pradesh), were converted to SEZs on announcement of the SEZ Policy. Another EPZ set up in the private sector in Surat was also converted to an SEZ. In addition to these, 11 more SEZs were set up by the State Governments/private sector during the period 2000-2005 in the States of West Bengal (2), Gujarat (1), Madhya Pradesh (1), Uttar Pradesh (1), Rajasthan (2) and Tamil Nadu (4). After the coming into force of the SEZ Act, 2005 on 10th February 2006, 566 formal approvals have been granted for setting up of Special Economic Zones, out of which 388 SEZs have been notified and are in various stages of operation. A total of 185 SEZs are exporting. While there is some concentration in certain states, the fact that the approved SEZs are spread over 20 States and 3 Union Territories indicates that these are not confined to any particular region. State-wise distribution of SEZs as on 20.06.2014 is in Table 7.1. The total land area involved in the formally approved SEZs including notified SEZs is around 62,238 Ha.

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Special Economic Zones (SEZs)

•

Table: 7.1 State-wise Distribution of approved Special Economic Zone

(As on 20.06.2014) State

In-principle approvals

Notified SEZs

Exporting SEZs (Central Govt. + State Govt./ Pvt. SEZs + notified SEZs under the SEZ Act, 2005)

108

Chandigarh

Chhattisgarh

Delhi

Dadra & Nagar Haveli

Goa

Gujarat

Haryana

Jharkhand

Karnataka

Kerala

Madhya Pradesh

100

Manipur

Nagaland

Puducherry

Punjab

Rajasthan

Tamil Nadu

Uttar Pradesh

Uttarakhand

West Bengal

566

388

185

Chapter-7

Andhra Pradesh

Maharashtra

Odisha

GRAND TOTAL

Formal Approvals

Source: Department of Commerce

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The six major sectors of IT/ITES, Hardware etc., Textiles and Apparel (including Wool), Pharma and Chemicals, Biotech, Engineering and Multi-products account for bulk (80%) of the SEZ formal approvals granted so far. IT/ ITES/Electronic Hardware/Semiconductor is the single most important segment accounting

for about 61% of the total formal approvals followed by Biotech and Engineering SEZs. More than half of the 566 formal approvals issued so far have reached the stage of notified SEZs. Sector-wise details of SEZ is as in the following diagram:-

Chart 7.1 Sector-wise distribution of SEZs in India (Number & Percentage of operational SEZs (185) as on 31.3.2014) Non-Conventional Energy(2) 1%

Textiles/Apparel/Wool(6) 3% Other(16) 9% Bio-tech(2) 1%

Special Economic Zones (SEZs)

Multi-Product(19) 10%

Pharma/chemicals(11) 6%

Engineering(11) 6% Footwear/Leather(3) 1% Food Processing(4) 2% FTWZ(3) 2% IT/ITES/Electronic Hardware/Semiconducto r(102) 55%

Gems and Jewellery(3) 2%

Handicrafts & Carpets(3) 2%

IV. Employment, Investment and Exports in SEZ

The details of employment and investment generated in the Special Economic Zones are given in Box 7.1 and Box 7.2.

Box 7.1 Direct Employment in Special Economic Zones (As on 20.06.2014) â&#x20AC;˘

SEZs in India provide direct employment to over 1283309 persons;

â&#x20AC;˘

The incremental employment generated by the SEZs in the short span of time since the SEZ Act came into force in February 2006, is of the order of 1148605 persons.

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Box 7.2 Investment in Special Economic Zones â&#x20AC;˘

The Special Economic Zones notified under the SEZ Act, 2005 have already made an investment of Rs. 296663 crore since the coming into force of the SEZ Act in February, 2006.

Export Performance

Chapter-7

The exports in the current year i.e 2013-14 from the SEZs have been to the tune of Rs. 4,94,077 crore (as on 31.03.2014). Exports from the functioning Special Economic Zones during the last seven years are in Table 7.2. Table: 7.2 Exports from the functioning SEZs during the last seven years Year

Value (Rs. Crore)

Increase (%) (Over previous year)

2007-2008

66,638

93.00

2008-2009

99,689

50.00

2009-2010

2,20,711

121.40

2010-2011

3,15,868

43.11

2011-2012

3,64,478

15.39

2012-2013

476159

31.00

2013-2014

494077

4.00

Source: Department of Commerce (SEZ Division)

SEZ Policy Reform Initiative While above achievements are in no way insignificant, a comprehensive analytical assessment of the performance of the sector has highlighted the need that certain aspects of the SEZ Policy and Operational framework perhaps require a re-look with a view to

174

possible reform in order to ensure that the laid down objectives of the SEZ Policy are better achieved. The geographical dispersion of the SEZs is mainly limited to six States, namely, Andhra Pradesh, Maharashtra, Gujarat, Tamil Nadu, Kerala, and Karnataka. These States account for the nearly 92% of the SEZs established so far. Further, most of the established SEZs, Particularly, IT/ ITES SEZs have come up in and around major urban centres. The sectoral dispersion of the SEZs also indicates that manufacturing SEZs are not markedly visible. With the availability of land becoming increasingly difficult, setting up of multi product SEZ becomes more challenging as it required minimum 1000 hectares of contiguous and vacant land. The operational issues relating to FTWZs, procedure for refund of CST, service tax etc., also need further elaboration. In order to address these concerns, inputs have been received from the stakeholders after meetings with the Principal Secretaries (Industries) of the State Governments, and by organizing outreach seminars under the auspices of the Zonal DCs. Inputs have also been received from trade associations like NASSCOM, ASSOCHAM, Federation of Indian Chambers and CII etc. Further action in this regard is in progress.

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Export Oriented Units (EOUs) The Export Oriented Units (EOUs) scheme introduced in early 1981, is complementary to the SEZ scheme. It adopts the same productions regime but offers a wide option in locations with reference to factors like source of raw materials, ports of export, hinterland facilities, availability of technological skills, existence of an industrial base and the need for a larger area of land for the project. As on 31st March, 2014, 2154 units are in operation under the EOU scheme. State-wise distribution of EOUs is given in table 7.3:-

Annual Report 2013-14

Table 7.3 State-wise distribution of functional EOUs States/UTs Andhra Pradesh

Functional EOUs as on 31.03.2014 271

Chhattisgarh

West Bengal

Bihar

Jharkhand

Orissa

Assam

Tripura

Mizoram

Manipur

Meghalaya

Nagaland

Arunachal Pradesh

Sikkim

Gujarat

211

Kerala

Karnataka

451

Tamil Nadu

402

Pondicherry

A & N Island

Maharashtra

279

Goa, Daman & Diu

Dadra & Nagar Haveli

Delhi

Haryana

Uttar Pradesh

Punjab

Special Economic Zones (SEZs)

In short span of about six years since SEZs Act and Rules were notified in February, 2006, formal approvals have been granted for setting up of 566 SEZs out of which 388 have been notified. Out of the total employment provided to 1283309 persons in SEZs as a whole, 1148605 persons is incremental employment generated after February, 2006 when the SEZ Act has come into force. This is apart from million of man days of employment created by the developer for infrastructure activities. Physical exports from the SEZs has increased from Rs. 476159 crore in 2012-13 to Rs. 494707 crore in 2013-14, registering a growth of 4%. There has been overall growth of export of 2063% over past eight years (2005-06 to 2013-14). The total investment in SEZs till 31.03.2014 is Rs. 296663 crore approximately, including Rs. 292627.49 crore in the newly notified zones. 100% FDI is allowed in SEZs though automatic route as per the provisions of the SEZ Act, 2005. A total of 185 SEZs are making exports. Out of this 102 are IT/ITES, 19 Multi product and 64 other sector specific SEZs. The total number of units in these SEZs is 3799.

175

Rajasthan

Himachal Pradesh

Jammu & Kashmir

Chandigarh

Uttrakhand

Madhya Pradesh

Total

2154 Table 7.4 Export Performance by EOUsâ&#x20AC;&#x2122;

Chapter-7

EOUs are mainly concentrated in textiles and yarn, food processing, Gem & jewellery, Computer Software, electronics, chemicals, plastics, granites and minerals/ores. Chapter 6 of the Foreign Trade Policy and Handbook of Procedure, (Vol.I) spells out the policy framework for EOUs.

(Rs. In Crores)

Year 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14

176

Exports during 2013-14 from EOUs were of the order of Rs. 82072.71 crore as compared to the export of Rs. 92089.80 crore during 2012-13.

EOUs Exports 1,76,923.02 84,135.66 76,031.13 79,343.28 92089.80 82072.71

Annual Report 2013-14

The Plantation sector is important component of Indian economy. This sector is related to the livelihood concerns of a large number of people employed directly and indirectly in the plantation industry and its ancillary activities. The primary focus of the sector is on livelihoods and uniqueness of the crops that represent historical, cultural and ecological uniqueness of their regions and are brand ambassadors of ‘India’. This has been a remarkable year for India in terms of International recognitions in the area of building coalitions and taking the lead at international commodity bodies along with pursuance of producers’ interests in the tea, spices and coffee sectors. The present chapter comprises of the following topics: A. Commodity Boards And Development Authorities

i. ii. iii. iv. v.

Other

Tea Coffee Natural Rubber Spices The Agricultural and Processed Food Products Export Development Authority (APEDA) vi. Tobacco Board vii. The Marine Products Export Development Authority (MPEDA)

Annual Report 2013-14

B. C.

Trade Facilitation Institutions i. Indian institute of foreign trade (IIFT) ii. Indian institute of packaging (IIP) iii. National Centre for Trade Information (NCTI) iv. Quality Control and Pre-shipment Inspection Agency v. Footwear Design & Development Institute (FDDI) vi. Indian Diamond Institute (IDI) Public Sector Corporations i. Minerals and Metal Trading Corporation Limited (MMTC) ii. The State Trading Corporation of India Ltd. (STC) iii. Spices Trading Corporation Limited (STCL) iv. Projects and Equipments Corporation of India (PEC Ltd.) v. India Trade Promotion Organisation (ITPO)

A. Commodity Boards And Development Authorities

Other

TEA India is the largest producer and consumer of black tea in the world. Tea is grown in 15 States in India, of which Assam, West Bengal,

177

Commodity Boards and other Development Authorities, Institutional Trade Facilitation and Public Sector Corporations

Tamil Nadu and Kerala account for about 98% of the total tea production. The traditional States where tea is grown to a small extent are Tripura, Himachal Pradesh, Uttarakhand, Bihar and Karnataka. The non-traditional States that have entered the tea map of India in the recent years include Arunachal

Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, and Sikkim. Production: The estimated production for the year 2013-14 was 1205.40 M.Kgs., as against 1135.07 M.Kgs for 2012-13, - an increase of 70.33 M.Kgs (6.20%).

Table: 8.1 Production of Tea in India during last three financial years (in million kgs) Year 2011-12 2012-13 2013-14(P)

North India 865.59 893.38 960.96

South India 229.87 241.69 244.44

All India 1095.46 1135.07 1205.40

Chapter-8

(P) Provisional, subject to revision Source: Tea Board

Exports : The estimated Exports for the year 2013-14 was 218 m. kg. - an increase of 2 m.kg over the previous year. Because of higher unit price, the total value of exports was up

by Rs. 386 crores over previous year. Total foreign exchange earned during 2013-14 was 727 M.US$ as against 736 M.US$ in 2012-13.

Table:8.2 Exports of tea from India during the last two financial years Qty M.Kgs 218

2013-14 (P) 2012-13 Value Value Unit Unit QtyM. Value Value Unit Unit Rs. Crs. M.US $. Price Price $/ Kgs Rs. Crs. M.US $ Price Price $/ Rs./Kg. Kg Rs./Kg. Kg 4392 736 185 3.40 214 3305 690 154 3.22

(P) Provisional, subject to revision:

Source: Tea Board

During 2013-14, significant improvement in exports was noticed for Bangladesh (256.04%), USA (15.46%), Iran (19.70%), UAE (7.81%) over the corresponding period.

51.91 million with a unit price of US$ 2.37 per kg in 2012-13. Out of the total volume tea imported, 8.66 million Kgs., was used for re-export during the year 2013-14.

Imports : The estimated volume of tea imported during the financial year 2013-14 was 19.23 million Kgs. valued at US$ 39.29 million with a unit price of US$ 2.04 per Kg. as against 21.90 million kgs., valued at US$

At present, basic import duty on tea is 100% and on instant tea 30%. However, duty free import of tea is allowed under the duty exemption scheme and/or by EOU/SEZ units.

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Series1 Others 45.69 21%

Series1 Germany 7.28 3%

Series1 CIS 51.58 24%

Series1 Bangladesh 10.61 5% Series1 Pakistan 19.78 Series1 9% UK 16.66 8%

Series1 ARE 7.39 3%

Series1 UAE 23.19 11%

Series1 USA 13.52 6% Series1 Iran 22.42 10%

(P) Provisional, subject to revision: Source: Tea Board

Prices :Prices in public auctions decreased by Rs.1.79 per kg during 2013-14 as compared to 2012-13. CTC Tea prices declined by Rs. 3.02 per Kg (2.42%) whereas there was an increase of Rs. 16.18 per Kg (10.37%) of Orthodox tea when compared to the prices for 2012-13. Table:8.3 Average Prices of Tea per kg sold in Public auctions (Rs/Kg) Period 2011-12 2012-13 2013-14(P)

North India 117.01 142.09 137.61

South India 70.26 93.75 95.82

All India 103.94 127.91 126.12

Source: Tea Board, (P): Provisional

Table: 8.4 Category Prices of Tea in Rs./Kg Category All Tea CTC Ortho

2011-12 103.94 100.50 119.74

2012-13 2013-14(P) 127.91 126.12 124.75 121.73 156.02 172.20

Source: Tea Board, (P): Provisional

Annual Report 2013-14

Tea Development As part of Plan schemes approved for implementation, financial assistance is extended for development of tea sector. Activities supported include uprooting and replanting/rejuvenation of old aged tea bushes, creation of irrigation facilities, new planting in hilly and NE Regions in small holdings, collectivisation of small growers by way of Self Help Groups/producer groups, training, demonstration, study tours modernisation of tea processing factories, value addition, quality certification, incentivization of production of orthodox and green teas. During the year, tea plantations were supported in achieving 724 ha of new planting, 5090 ha of replanting and 983 ha of rejuvenation of tea bushes including irrigation support at a cost of Rs 57 crores. Increase in production of orthodox tea by 61 mn kg was also achieved at a cost of Rs 16 croroes. Small Grower Development Directorate During the year, a separate Directorate was established to look after the developmental

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Chart 8.1 Direction of Indian Tea Exports in 2013-14(P)

needs of the small tea growers. The Directorate with headquarters at Dibrugarh in Assam started functioning with effect from 1st April 2013. Developmental activities supported by the directorate include enumeration and issuance of identity cards to the small growers, group formation and linking them with tea factories, extending advisory services, setting up of nurseries for supply of good quality planting materials, organising, study tours Tea conventions and workshops etc. A total of Rs 4.77 crores was spent on these activities. A sum of Rs. 2.69Cr was spent on extending assistance to SC small tea growers.

Chapter-8

The India Sustainable Tea Program : A sustainability code – named as ‘ Trustea’, was launched in Kolkata on 11 July 2013. The code which is now under pilot phase encompasses all aspects of tea production and seeks to embrace sustainability principles to boost productivity, maintain safety standards to improve quality compliance, and include all stakeholders in the mainstream. On full scale adoption by the Indian tea industry, the Trustea code would lead to production of “Certified” safe and hygienic teas - safer, healthier and more environmentally friendly teas. The programme would gear the up the industry to be ready for facing future consumer and customer demands, safeguard the competitiveness of the Indian tea industry, maintaining improved relationships and loyalty in the supply chain and other stakeholders, long-term security of supply for the Indian tea market, healthier plantations, workers and the environment, international recognition of sustainable tea practices in India.

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Organic Tea Development Project: This five year project launched in September 2008 with the support of FAO-IGG, CFC and IFOAM was successfully completed on September 2013. The final evaluation of the project was carried out by an evaluation team mounted by CFC during September 2013. Energy Conservation in small tea processing factories in South India : This project was launched in 2008 with the support from UNDP-GEF (United Nations Development Programme – Global Environment Facility). This four year project was completed in 2012. The interventions through the project resulted in saving 10 million KWH / yr and 25,000 tons firewood /yr valued at USD 2.3 million by south Indian tea factories. CO2 emission reduction estimated to be more than 200,000 tons in the project period. The project also demonstrated a successful multi stakeholder engagement with civil society, academic institutions and private sector working together under the guidance of the Tea Board. Given the significant results of the project, it has been decided to replicate the project with the assistance of UNDP in the North Indian Plantations as well during the XII Plan period. The project will be launched soon after receiving the approval of Government for the activities proposed for the XII Plan period. Labour Welfare : Supporting welfare measures for securing better working conditions and improvement of amenities and incentives for workers and their dependants is one of the major objectives and functions of the Tea Board, as mandated in the Tea Act 1953. Since the regulatory and welfare of plantation workers fall under the ambit of PLA and

Annual Report 2013-14

Introduction of pure or predominantly Indian brands by foreign packers is also being encouraged.

Tea Promotion

Towards this objective, the activities envisaged under the 5-5-5 Project were continued during the year. This project is aimed at positioning “Indian Tea” as an overarching umbrella brand to connect with the trade and the consumers. This is expected to result in prominent brand recall for “Indian Tea” over the short to medium term so as to translate into significant increase in value market shares in the targeted markets for years to come. Keeping in view the increasing competition in the world market, a number of promotional activities centering around ‘Extensive promotion of India Tea Logo (familiarization/creating awareness)’, ‘Engagement with the local trading community’ and ‘Consumer-oriented promotion’ were undertaken with great zeal in the strategically important markets of U.S.A., Russia, Kazakhstan, Iran and Egypt. In fact, as a consequence of sustained promotion through 5-5-5 Programme, exports to Iran and U.S.A. witnessed 20% and 19% volume growth respectively in 2013-14 as compared to 2012-13; while the value growth registered 35% and 8% respectively in the same comparing periods.

One of the primary functions of the Tea Board is to carry out promotion activities aimed at improving the consumption of tea and to boosting Indian tea exports. Focused attention is being paid to selected countries, where there is greater scope for increasing export. Indian exporters are being provided with all possible support to encourage exports and marketing of Indian brands abroad.

During 2013-14, the Tea Board carried out various promotional activities such as participation in trade fairs & exhibitions, organising PR events, giving adverts in local media mainly through its overseas offices located at London, Moscow and Dubai to enhance demand for Indian tea and thereby increase market shares in the respective markets. Other activities included launch

Under the health and hygiene programme, financial support is provided for safe drinking water, sanitary units, augmenting the infrastructure of the garden hospitals/ health centres and procurement of medical equipments and accessories, ambulance etc. For specialized treatments for tea plantation workers and their dependants, beds are reserved in selected hospitals/health clinics. Family welfare education programme are supported for creating awareness amongst the workers on small family norms, prevention of aids/HIV infection, drug abuse etc. Scouting and guiding activities are also supported for the benefits of children. Financial assistance is also given to physically challenged plantation workers and their wards by providing crutches, caliper shoes, artificial limbs etc. A total of Rs 8.13 crores was spent on these activities during the year 2013-14.

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the same being implemented by the State Government, the welfare activities under taken by the Board are supplemental in nature and cover general welfare measures on the three broad areas, namely(a) Improving the health and hygiene of workers; (b) Education of wards of workers; and (c) Imparting training to improve skills for growers/workers and plantation managerial staff etc.

Chapter-8

of campaign through established social networks like Twitter, Facebook in important markets of Russia, Kazakhstan Iran & U.S.A., promotion through Tea Associations having majority of exporter members from India with cost sharing basis limited to Rs.50 lakh per annum, participation in major B-2-B trade fairs and undertaking full-fledged business delegations (both inbound and outbound) in the 5-5-5 countries, market surveys, market analysis and tracking of consumer behaviour, registrations of Board’s Logos in various markets as well as popularizing the usage of these logos in order to enhance the equity of Indian Tea and its various single-origin teas. The markets in Russia, Kazakhstan, UK, USA, Iran, Egypt, Pakistan and UAE continued to be of high importance. The Tea Board has also begun a promotional campaign in the domestic market. Owing to strong competition from other major producing and exporting countries whose teas are already entrenched in most of the export destinations, it is felt that it may be difficult to dislodge their position in the near future and enter such competitive markets. In the leading exporting countries such as Kenya and Sri Lanka, bulk of the production comes from small sector where they have advantage of lower cost. On the other hand, nearly 65% of the production in India comes from the organized sector which needs to take care also of the social cost. The comparatively higher cost of Indian teas therefore, often leads to Indian tea being priced out in the international markets. With a view to avoid any surplus production caused by such situation leading to price depression and to create enhanced demand in order to absorb surplus production, it has been planned

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to launch a promotional campaign among the villages and rural population by for increasing the average intake of every person by one more cup of tea. The objective of this campaign is to reinforce the image of Indian tea in the minds of the rural population as the most preferred beverage, thereby increasing consumption and popularity of Indian tea. This campaign also aims to give an ‘image makeover’ to Indian tea, whereby every villager will take pride in sipping his/her daily cup of ‘chai’. Intellectual Property Rights (IPR) activities Tea Board has continued its objectives to protect and preserve its various tea names and logos as India’s treasured geographical indications and icons of India’s cultural and collective heritage. The Tea Board continued to challenge, by way of opposition/ invalidation/ cancellation actions, legal notices, court actions and domain name cancellations, instances of attempted registrations and misuse of these tea names and logos both at the domestic and international level. The Tea Board has renewed its registrations for the mark DARJEELING and DARJEELING (Logo) in India for a further period of 10 years. During the year, twenty Five oppositions were filed by the Tea Board to prevent attempted registrations and misuse of DARJEELING, ASSAM, NILGIRI tea names and logos as well as the INDIA TEA Logo. Tea Board filed one opposition in Germany, pertaining to use of a mark TEEKANNE ROYAL ASSAM which comprises of the word ASSAM. This opposition is pending before the Community Trade Marks Office. Around three hundred

Annual Report 2013-14

different tea plantation areas in their respective zones. During 11th plan period, seventeen research projects in diverse areas of tea research were sanctioned to three Tea Research Institutes (TRA-11, UPASI-4 and DTR&DC-2), and three projects – one each were given to Indian institute of Technology (IIT), Kharagpur; Centre for Development of Advanced Computing (CDAC), Kolkata and Calcutta University. •

80% funding has been provided to TRA and UPASI-TRF (49% in the form of regular grant-in-aid under 5 identified heads and 31% to be linked to research projects). Upgradation work of DTR&DC as “Centre of excellence” was also continued. Important areas of tea research include tea improvement, quality & product diversification, mechanization (labour saving technology), production (agronomy and soil science), pest management, climate change, and regulatory aspect. New institutes are being inlcuded in the All India Coordinated network research projects on tea .Under the programme, financial support is given to the universities in tea belts of the country that carry out specialized course on tea science and cater to the need of technical manpower for the industry.

•

Tea Cess: Cess is levied on all teas produced in India under Section 25(1) of the Tea Act, 1953. Tea cess is the main source of funding for the Non Plan Expenditure of Tea Board. Presently the rate of tea cess is 50 paise per kg of made tea for all teas produced in the country except Darjeeling tea which is at 20 paise per Kg of made tea.

Tea Licensing : The Licensing Branch of the Tea Board is responsible for implementation of various statutory and regulatory provisions of the Tea Act 1953 and orders issued there under by the Government from time to time e.g. Tea (Marketing) Control Order, Tea (Distribution and Export) Control Order, Tea Ware-House License order and Tea Waste Control Order. The main functions include issuance of permission for planting, registration of tea manufacturers, Buyers, business licenses for tea exporters and distributors; non-preferential certificate of origin for tea exporters; Tea Waste license; Tea Warehousing licenses etc. Tea Research : As per the provisions of Tea Act, 1953 Tea Board has been extending support to tea research for the development of Indian Tea Industry through three tea research institutes, namely Darjeeling Tea Research and Development Centre (DTR&DC); Tea Research Association (TRA), Jorhat, Assam and United Planters’ Association of Southern India – Tea Research Foundation (UPASI-TRF), Valparai, Tamil Nadu. TRA and UPASI-TRF are also disseminating extension services through the network of their advisory centres in

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and forty five oppositions are pending in India. In recognition of the Tea Board’s rights, 32 parties settled the matters and 74 oppositions were decided in favour of the Tea Board in recognition of its rights.Presently, there are seven opposition matters, six appeals, one lawsuit and one cancellation action pending outside India. Ten matters were disposed of during this period in favour of the Tea Board of which three were in China, two in Turkey, and one each in France, UK, Germany, Australia and Canada.

The Coffee Board mainly focuses its activities on research, extension, development, quality up-gradation, economic & market intelligence, external & internal promotion of coffee and

labour welfare. Coffee is cultivated in an area of around 4.15 lakh hectares predominantly in the traditional areas covering the States of Karnataka, Kerala and Tamil Nadu, which contributes around 98 percent of the total production. Coffee is also cultivated to some extent in Non Traditional areas of Andhra Pradesh and Odisha and to a lesser extent in the North Eastern States of Assam, Arunachal Pradesh, Meghalaya, Mizoram, Tripura, Nagaland and Manipur with main emphasis on tribal development and afforestation. Coffee Production : The post-monsoon crop estimates for 2013-14 has been placed at 3,11,500 MT consisting of 1,02,000 MT of Arabica and 2,09,500 MT of Robusta as compared to the 2012-13 final crop estimates of 3,18,200 MT comprising of 98,600 MT of Arabica and 2,19,600 MT of Robusta.

Chart 8.2 Production of Coffee in India (MT) Production of coffee in India (In MT) 350000 300000 250000 200000 150000 `

100000 50000

Arabica

Robusta

2013-14*

2012-13

2011-12

2010-11

2009-10

2008-09

2007-08

2006-07

2005-06

2004-05

2003-04

Chapter-8

COFFEE Coffee Board is a statutory organization under the control of Ministry of Commerce, Govt. of India constituted under The Coffee Act 1942, an Act enacted by the Parliament. The Board has a Central Coffee Research Institute at Balehonnur (Karnataka) and Regional Coffee Research Stations at Chettalli (Karnataka), Chundale (Kerala), Thandigudi (Tamil Nadu), RV. Nagar (Andhra Pradesh) and Diphu (Assam), and a biotechnology centre at Mysore, apart from the extension offices located in coffee growing regions of Karnataka, Kerala, Tamil Nadu, Andhra Pradesh, Orissa and North Eastern Region.

Total

Source : Coffee Board * Post Monsoon Estimates

Coffee Productivity: Based on the estimated crop production for the year 2012-13, the overall productivity of coffee is 846 kg/ha.

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The productivity for Arabica is 560 kg./ha and for Robusta, it is 1097 kg/ha. As far as the traditional area is concerned, the overall

Annual Report 2013-14

Coffee Export: Coffee is primarily an export oriented oommodity and presently 70% of Coffee is being exported, while balance is being consumed domestically. The total quantity of coffee exported from India during 2012-13 including re-exported coffee after value addition was 2,99,236 Metric

Tonnes. The top five export destinations for Indian Coffee are Italy, Germany, Russian Federation, Belgium and Slovenia, which accounted for about 53% of our total coffee exports. The value realization out of coffee exports during 2012-13 was Rs. 4551.69 crores. During the year 2013-14, India exported 3,15,000 MT valued at Rs. 4800.91 crores as against the export target of 2,56,000 MT.

Chart 8.3 Exports of Coffee from India (In MT) Exports of Coffee from India (In MT) 350000 300000 250000 200000 150000 100000 50000 0 2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13 2013-14*

Source : Coffee Board * Provisional

Export of Value Added Coffee: The export of value added coffee used to be in the range of 44,764 MT to 64,966 MT during the period 2003-04 to 2007-08. In 2008-09, the export of value added coffee was about 48,812 MT which started growing steadily and consistently at an annual compound growth rate of 13.11 % and it has reached an all time high of 94,250 MT in 2013-14.

recent years, with an annual average growth rate of 5-6% per annum during last decade. The domestic consumption is estimated at 102,000 MT for 2009-10 based on the coffee consumption survey carried out during 2009. It was provisionally estimated at 115,000 MT for 2011-12. The process of assessment of domestic consumption for 2012-13 and 2013-14 is underway.

Domestic Consumption: Coffee consumption in the country is growing much faster in

Several steps/programmes have been initiated by the Board for supporting the

Annual Report 2013-14

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productivity for 2012-13 is 951 kg/ha with the productivity for Arabica being 717 kg/ha and that for Robusta being 1102 kg/ha.

Chapter-8

domestic market development of coffee. The entrepreneurial development trainings at IIPM in the coffee sector are being given to augment development of enterprise in roast and ground coffee which further feeds the rising demand by setting up of new roasting units and increasing the capacity of the existing units. For improving coffee awareness, Coffee Board participates in the high impact tools like domestic exhibitions and expos to create awareness on positive aspects of coffee. The media campaigns also focus on strengthening the drivers of consumption while simultaneously promote awareness on the various support schemes of Coffee Board. During 2013-14, Coffee Board participated in 46 important exhibitions held in Indiatopromote coffee as a beverage in the non-conventional coffee drinking areas. Export Promotion of Coffee: The high quality Coffees of India earn premium in the international market. However, considering the supply constraint due to limited production base, it is important to increase the visibility in high value far off markets like USA, Japan, Canada, Australia and New Zealand, while retaining our strong base in the European Union. Export incentives are extended by the Board to encourage export of value added coffees in retail packs and high value coffees to far off markets. These efforts are supported by participation in selected international coffee centric trade conferences and events, Organizing Cupping and Buyer-Seller Meets, increasing trade awareness on Coffees of India as shade-grown, handpicked and sun dried, by inserting advertorials/advertisements in prominent overseas trade journals and

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magazines besides maintaining constant high level interaction with the International coffee community through proactive participation in International Coffee Organization and such bodies. Coffee Board showcased Coffees of India at premium events in USA, Japan, China, Korea, Italy, Germany, Australia, Russia, Dubai and Bangkok. Flavour of India - Fine Cup Awards 2013: The Coffee Board of India has been organizing Flavour of India - The Fine Cup Award Cupping Competition every year with an objective of promoting production of fine quality coffees. Final round of cupping for the Twelth year of Flavour of India Competition was held on 2628, June 2013 at Acropolis Exhibition Centre, Nice, France. The logistic & technical support was provided by SCAE. For the Competition, 221 coffee samples (137 Arabica samples, 84 Robusta Samples,) were received, out of which 40 qualified for finals and were put up for cup quality evaluation by the International Jury. India International Coffee Festival 2014 (IICF 2014): The recently concluded 5th edition of the India International Coffee Festival-2014 held in Bangalore from 21st -25th January 2014 was a testimony of the increasing importance of our country in the coffee map of the world. The festival which was witnessed by more than 10,000 persons has seen participation of more than 524 delegates and 250 organizations from across 17 countries. The festival was organized by the India Coffee Trust with the support of the Coffee Board. The Coffee Board distributed the Flavour of India â&#x20AC;&#x201C; Fine Cup Awards for the years 2012 and 2013 and the Export Awards for the years 2011-12 and 2012-13 alongside

Annual Report 2013-14

the Award distribution ceremony of the IICF. Another new element which got added to the IICF was an All India Coffee Quiz in which more than one lakh participants took part. Coffee Prices: Coffee prices in India are largely influenced by the New York Exchange (NYBOT) for Arabicas and London Exchange (LIFFE) for Robustas. The international coffee prices are volatile and have a tendency to fluctuate. After prolonged coffee crisis which prevailed from 2000 to 2004, the international coffee prices started recovering from 2005 onwards. The improvement in ICO indicator prices was more significant from 2009 onwards reaching a record high of US cents 300.12 per lb for Arabica coffee in April 2011 and US cents 121.98 per lb for Robusta coffee in May 2011. The international coffee prices have, however, shown a downward trend since then. The ICO Arabica coffee prices declined by 58% reaching a low of 125.97 US cents per lb in December 2013. The Robusta coffee prices also showed a downward trend, though the initial decline was not as acute as for Arabica. The ICO Robusta coffee prices declined by 28% reaching 87.89 US cents per lb in December 2013. Similar decline in coffee prices has been observed in the domestic market also.

Annual Report 2013-14

January 2014 onwards, the coffee prices maintained stability and showed sign of recovery following the fall in production due to abnormally hot and dry weather conditions in Brazil, the largest producer and exporter of coffee. This has raised alarms regarding damage to next season’s crop. In April 2014 the ICO Arabica coffee prices have touched 123.48 US cents per lb and the ICO Robusta coffee prices touched 105.55 US cents per lb.The average ICTA domestic price of Arabica during the month of April 2014 was Rs.277.33/kg and the average domestic price of Robusta during the month of April 2014 was Rs.157.08/kg. Coffee Development Schemes during XIIth Plan Based on recommendations made by IIPM, Bangalore under their study ‘Structural Infirmities in Plantation Sector’ – Coffee, the specific recommendations made by the Department Related Parliamentary Standing Committee on Commerce (DRPSCC) and other inputs, the ongoing XIth schemes have been combined into a single scheme “Integrated Coffee Development Project” with ten major components for a total outlay of Rs. 950 Crore.

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Inauguration of IICF 2014 by Hon’ble Chief Minister of Karnataka

Table: 8.5

(Rs. crores)

Chapter-8

Component

Component title

Outlay

R &D for Sustainable Coffee Production

Transfer of Technology and Capacity Building programmes

Development Support for Coffee in Traditional Areas

311.00

CDP in Non-traditional Areas

125.00

CDP in North East Region

54.50

Rainfall Insurance Scheme for Coffee (RISC)

10.00

Support for Mechanization of Coffee Estate Operations

80.00

Export Promotion

60.00

Market Development

55.00

Support for Value Addition

25.00

Total Outlay (Rs. crore)

137.50 92.00

950.00

Strategic initiatives for Coffee Sector in XII Plan: The coffee sector underwent unprecedented crisis during the period 20012004. Despite that, the sector has shown signs of recovery towards the end of XI Plan period thanks to various relief/ support measures announced by the Governments both at Central and State levels. The country’s coffee production has crossed the 3,00,000 MT level during 2010-11 (3,02,200 MT). However, issues like stagnant production, declining productivity, erratic weather due to climate change, shortage of workers etc., remain the major constraints towards the full revival of coffee sector in the country especially to meet the future requirements of domestic and export markets.

avenues for value creation along the coffee value chain by creating entrepreneurial opportunities and creation of skilled jobs. The Board proposes to continue the training programmes for capacity building of stakeholders and entrepreneurs in roasting & brewing of coffee through Kaapi Shastra Training Programmes – which are 2-5 day training workshops organized in different parts of the country on coffee roasting and brewing. A one year Post Graduate Diploma in Coffee Quality Management which was discontinued in 2008 has been restarted by the Coffee Board of India and has received a a very positive response in 2011. This Diploma helps in developing professional manpower in the area of Quality Evaluation.

Coffee extension: The growth in the domestic market over the last ten years with an annual average growth rate of 5 - 6% has opened up

`Café Movel`, a mobile phone technology based extension service in coffee was jointly formulated by Coffee Board of India

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Coffee Board has conducted surveys in traditional areas as well as in new areas like Himachal Pradesh and Darjeeling to identify potential areas suitable for coffee expansion in the country. Expansion of coffee is being envisaged to meet the increasing demand for coffee in the domestic market, without impacting the India’s share in coffee exports. In the traditional areas, expansion of coffee in suitable areas is proposed to be encouraged through incentives for new planting in XII Plan. Coffee Debt Relief Package – 2010 : The Government of India granted the Coffee Debt Relief Package – 2010 for the debt ridden small coffee growers with a total implication of Rs. 299 Crores The total amount disbursed so far is Rs.293.45 crores benefiting 1,35,283 small coffee growers. Coffee in North Eastern region : The Coffee Board continued its efforts to promote coffee cultivation in the North Eastern States viz., Assam, Arunachal Pradesh, Meghalaya, Mizoram, Tripura, Nagaland and Manipur with main emphasis on tribal development and afforestation. The present area under

Annual Report 2013-14

coffee (2013-14) in North Eastern Region is 6039 ha comprising of 4860 Ha. of Arabica and 1179 Ha. of Robusta with 8011 Coffee holdings. The general climate is mostly topical and sub tropical with district features experiencing long day, high rainfall change in diurnal temperature etc,. Though the rainfall spread in NER is not a limiting factor for coffee cultivation, the low temperature in winter months do not help to improve productivity. The coffee production in entire NER continued to be low on account of various factors including non use of recommended inputs, non maintenance and low plant density. Under the Coffee Development Programme for North Eastern Region, subsidy @ Rs.20,000/hectare for expansion of coffee and at Rs.15,000/hectare for consolidation was provided. During the year 2013-14, support was extended to an area of 519 Ha. under Expansion / Consolidation. Under Quality up-gradation 90% subsidy was extended for growers below 2 hectares and at 50% for growers above 2 hectares for the preparation of good quality coffee. During the year 2013-14, support was extended 247 units of Drying yard/baby pulpers under the scheme. Market Support was extended to a quantity of 172.29 MT coffee. In addition to extending subsidy, support for production, productivity and quality improvement activities in NE Region, the Board extended financial support for meeting the cost of collection, storing, curing, transportation and disposal of coffee produced in the North eastern region. Coffee Board continues to provide technical support to coffee growers for improving production and productivity with the support

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and Commonwealth Agricultural Bureau International (CABI) - South Asia, New Delhi. CABI, an inter-governmental organization, is the leading international non-profit science based development and information organization which has years of experience in working with coffee farmers across the globe. CABI also has rich experience and technical know-how on application of mobile phone technology based extension services in several field crops through direct2farm service.

Chapter-8

of Regional Coffee Research Station at Dhipu, Assam . During 2013-14, Coffee growers were trained on various aspects of coffee cultivation and maintenance of coffee fields through 2474 estate visits, 1190 method demonstrations, 314 group gatherings, 6 training programmes at TEC’s located at different states, 54 quality awareness campaigns and 26 study tours. Further Reach-out Training programme were conducted through the Indian Institute of Plantation Management, Bangalore during the year for the benefit of 30 tiny tribal growers of NER. International cooperation: During the year, Indiawas elected as the Chairperson of International Coffee Council (ICC) during the ICO meeting held in September 2013. Coffee Board also entered into an Agreement with the World Coffee Research (WCR) during March 2014 for participation in a multicountry R&D programme on improvement of Arabica coffee. The WCR is a non-profit initiative of Global Development Alliance (GDA) programme funded by the USAID to strengthen the research and farmers’ assistance programmes in the fight against coffee leaf rust. This collaborative R&D programme is executed by coffee research institutions of coffee producing countries and managed by the Norman Borlaug Institute for International Agriculture located at the Texas A&M University.The research has the potential to introduce new Arabica varieties in India, necessity of which is being felt quite for some time.

RUBBER More than 90 per cent of the country’s area under the crop and 93 per cent of the

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production comes from 1.25 million small holdings, having average size of 0.55 hectare. Area under cultivation in the country expanded by 2.4 per cent to 776,000 ha during 2013-14 driven by a host of factors which include financial incentives for planting, effective extension measures reaching to the grassroots level, and development and propagation of improved clones. Rubber is successfully grown in the States of Kerala, Tamil Nadu, Karnataka, Tripura, Assam, Meghalaya, etc. Kerala alone accounted for 72 % of the country’s total rubber area during 2012-13. Relative share of the north-eastern region has increased substantially in the recent years. According to “NR Trends & Statistics” published by the Association of Natural Rubber Producing Countries (ANRPC), India ranked fifth in terms of production of NR during 2013, by accounting for 7.1 per cent of the global output. The country is provisionally estimated to have produced 846,000 tonne of NR during 2013-14, down 7.4 % from the previous year. According to provisional estimate, average yield fell during 2013-14 to 1,633 kg/ha due to adverse weather and low prices prevailed during the year. The country came down to the second position in the ranking in terms of average yield. Consumption of NR : Based on the figures for 2013, India occupies the second position in terms of consumption of NR, next to China. According to provisional estimate, India consumed 978,745 tonne of NR during 201314 up 0.6 % per cent on year. Auto-tyre sector accounted for 66 % of the quantity consumed during April’13 to January’14 by registering

Annual Report 2013-14

Import of NR : The cap on import duty for NR falling under HS 400121, 400122, and 400129 has been raised to Rs.30 per kg effective from 20 December 2013. New rate is “20% or Rupees 30 a kilogram whichever is lower”. For NR latex (HS 400110), the rate remains at “70% or Rupees 49 per kg whichever is lower". The country is estimated to have imported 325,190 tonne of NR during 2013-14 as per the NOC for customs clearance issued by the Rubber Board, which is the designated

agency for enforcing quality. An estimated 65 % of total imports had landed through open-channel on payment of prevailing customs duty. Also, 71 % landed in the form of Technically Specified Rubber. Export of NR : India’s exports of NR fell during 2013-14 to 5,398 tonne from the previous year’s 30,594 tonne. In terms of value, the exports fell 83% to US$ 14.3 million from US$ 86.2 million in the previous year. Following table summarizes the trends in production, consumption, import and export during 2013-14.

Table: 8.6 Indicator (Tonnes) Production Growth Consumption Growth Import Export

First Half 395,700

2012-13 Second Half 518,000

Total 913,700

502,330

470,375

972,705

112,641 7,466

104,723 23,128

217,364 30,594

Closing Stock of NR: Estimated total stock of NR with growers, processors, traders and manufacturers at the end of March 2014 was 250,000 tonne as against 253,000 tonne at the end of March 2013. Prices of NR : Prices of India’s benchmark grade of rubber, RSS-4, averaged at Rs.166.02 per kg at Kottayam in the domestic market during 2013-14 as against Rs.155.25 per kg for the comparable grade (RSS-3) at Bangkok in the international market. Monthly average prices in the domestic market (RSS-4, Kottayam) have stayed above the international market (RSS-3, Bangkok) during 2013-14 except for November and December.

Annual Report 2013-14

First Half 345,000 (-12.8%) 491,580 (-2.1%) 181,700 3,495

2013-14p Second Half 501,000 (-3.3%) 487,165 (3.6%) 143,490 1,903

Total 846,000 (-7.4%) 978,745 (0.6%) 325,190 5,398

Marketing System : Marketing System for NR in the country is perfectly designed with 9323 dealers and 116 processors positioned across the country covering all the rubber-growing belts. To boost sales in the export and domestic markets, the Rubber Board participated in 9 overseas trade fairs held at Moscow, Poland, USA, China, Turkey, South Africa, Thailand and Indonesia and 11 domestic trade fairs held at Chennai, Mumbai, Gujarat, Kolhapur, New Delhi, Mumbai, Indore, Bangalore &Kolkatta and provided opportunity to exporters for participating and displaying their products. To promote group marketing system and quality awareness among growers, Board

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Commodity Boards and other Development Authorities, Institutional Trade Facilitation and Public Sector Corporations

0.7 % growth as against 2.6 % dip in general rubber goods sector.

organized 11 training programs in association with NIAM, Jaipur.

Chapter-8

Collection of Cess : Under Sections 12(1) and 12(2) of the Rubber Act, the Board is entrusted with the task of assessment and collection of cess, a duty of excise, on indigenous production of NR and remittance of the same to the Consolidated Fund of India (CFI). Rate of cess effective from 1st September 2011 is Rs. 2.00 per kg. During the year 2013-14, the collection of cess amounted to Rs. 116.87 crore against the revised annual target of Rs. 115.00 crore. The Board has also collected and deposited to the CFI, interest on belated payment of cess, @ 1.5% per month, amounted to Rs. 65.13 lakh during the year 2013–14. Besides, collection of compounding charges during the year 2013–14 is Rs. 98.50 lakh. Plan Schemes for Rubber during XIIth Plan: Revised outlay for Rubber Development Scheme under Plan in 2013-14 was Rs. 157.36 Crore while the Non-Plan budget amounted to Rs 50.00 Crore. Plan and NonPlan expenditure during 2013-14 amounted to Rs. 158.52 Crore and Rs. 57.06 Crore respectively. During the 12th Plan period, Rubber Board’s proposal fpor the Scheme of "Sustainable and Inclusive Development of Natural Rubber Sector" with an outlay of Rs 960 Crores has been agreed. International cooperation : A two-member delegation from Rubber Board attended Annual Meetings of International Rubber Study Group (IRSG) held in Singapore from 20 to 24 May 2013. India being the Chairman of

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the Group, Chairman, Rubber Board presided over the Heads of Delegations Meeting of IRSG. A three-member delegation headed by Director (Plantations), Department of Commerce represented India in the Annual Meetings of the Association of Natural Rubber Producing Countries (ANRPC) held in Colombo, Sri Lanka from 7 to 12 October, 2013. Under bilateral clone exchange program, it was decided to exchange clones during the visits of RRII scientists to China, Vietnam and Sri Lanka. Two senior scientists from Vietnam visited RRII.Under IRRDB initiative for multilateral clone exchange among 10 countries, Head of crop improvement attended plant breeders’ meetings at Malaysia and Indonesia during May 2013 and MOU and MTA for the programme were drafted. Development/ Extension activities and Labour Welfare Schemes : Rubber plantation development activities are targeted to improve the production and productivity of rubber in the country. Technical know-how and financial assistance to the growers for scientific planting and maintenance of rubber holdings, generation and distribution of good quality planting materials, providing training for scientific harvesting of the crop, promoting Rubber Producers Societies (RPSs) & Small Help Groups (SHGs) of small farmers for extension activities, raising block plantations in association with State Governments for welfare of SC/ST, setting up of Community Processing Centres to support infrastructure facilities. Annual campaign 2013 with focus on quality of field coagulum for improving ISNR was

Annual Report 2013-14

Under Rubber Plantation Development (RPD) schemes, Rubber Production department provided financial assistance to the tune of Rs.38.00 crore during the year 2013–14 benefiting around 1,20, 000 rubber small growers. During the reporting period, 101 RPSs / SHGs have been organized and distributed critical inputs worth of Rs. 9.00 crore among small growers through RPSs and achieved a target of 15000 ha in Traditional/ Non-Traditional areas under Productivity Enhancement Scheme. Welfare of SC/ST Communities : The tribal settlement project under RPD scheme is, operated with financial contribution from State Governments, continuing this year too. During the year, rubber planting carried out in an area of 253 ha. Labour Welfare Schemes : Under various labour welfare schemes, the Board disbursed Rs.2.59 crore benefiting 32,731 rubber tappers and their families during the year 2013–14 against the revised annual target of Rs. 2.7 crore. During the year, the Rubber Board assisted new planting or replanting in 5870 ha of traditional areas of rubber cultivation other than NER. In non-traditional areas other NER,

Annual Report 2013-14

the assistance was provided for 2539 ha, while the assistance in the NER region was given to farmers for new planting/replanting in 8588 ha. Rubber Research : During the period, the Rubber Research Institute of India (RRII) and its Regional Stations were involved in active research programmes under major schemes. Research activities of Regional Stations are under the scheme “Strengthening of Regional Research Stations” and of North-East research stations under “Research in NE Region”. Various research support services provided active assistance to research programmes. Research was conducted in various fields of development and scientific experiments e.g. crop improvement, germ plasm, molecular biology and biotechnology, genome analysis, molecular physiology, molecular pathology, latex harvest technology, and soil Testing & fertilizer advisory etc. Economic research : Rubber Board carried out various socio-economic studies during the year. Study on Trends in area under NR and food crops in Tripura revealed that most of NR was cultivated in tilla (upland) land, which was partly used for jhum cultivation before NR cultivation. Insufficient returns from other crops and suitability of NR in the specific topography of the region were found to be major reasons for encouraging NR cultivation. Annual average yield was 1237 Kg/ha in Tripura State. In its research on beneficiary households in Tripura, it found that they had better access to selected infrastructural facilities in the region. Study on socio-economic dimensions of participatory trials of LFT in Kerala highlighted

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Commodity Boards and other Development Authorities, Institutional Trade Facilitation and Public Sector Corporations

conducted from 10 June to 19 July 2013. In NE region, the thrust was on sheet rubber processing. Around 98,000 growers participated in the campaign programme. The valedictory function of Silver Jubilee celebrations of the formation of Rubber Producers Societies (RPS) was inaugurated by Shri K M Mani, Honb’le Minister for Finance, Govt. of Kerala on 19 July 2013 and released a compendium of articles on RPS.

Chapter-8

the fact that size of holding is a major factor determining the adoption of d3 tapping with stimulation. Availability of family labour was found to be a key factor influencing the adoption of LFT in smaller size group with less than 1 ha area under rubber. In the case of NR, available evidences on increase in NR imports through duty paid channel indicated supply side rigidities in NR production sector and shift to optional non advalorem duty since 2010. Emerging trends in the growth and composition of NR imports underline the need for reinvigorating the NR production sector to confront the challenges of market integration. Research also concluded that Net present value (NPV) of yield and timber was 22 years of productive life. Modernisation & Quality upgradation: Rubber Board spent an amount of Rs.71.90 lakh for modernization and quality upgradation of rubber processing units and Rs. 180 lakh was disbursed to two Rubber wood processing companies towards working capital grant and procurement of spares. Rubber Processing & Market Development: An amount of Rs.315 lakh was released to 13 RPS trading companies towards working capital loan for NR trading and Rs. 46.02 lakh was disbursed to 20 RPS trading companies and Co-operatives towards 5% interest subsidy. In addition, Rs. 115 lakh was disbursed to 10 RPS trading companies as estate input loan. Processing & Quality Control : A total of 18533 samples of latex, dry rubber, water, effluent and chemicals were tested and collected Rs19.42 lakh as revenue. In addition, 135 latex/dry rubber samples were

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tested for export. Further, 100 Quality control inspections and 63-BIS inspections were conducted during the year. Factory Management : During the year, Rubber Board produced 1058.475 MT of block rubber and 109.318 MT of centrifuged latex. Sales turnover for Model TSR factory was Rs15.48 crore against sale of 987.90 MT of block rubber. Latex sales turnover was Rs. 2.27 crore for 109.14 MT centrifuged latex from the Pilot Latex Processing Centre. Rubber Training Institute : During the year, Rubber Training Institute (RTI) conducted 273 training programmes imparting training for 5457 beneficiaries against the target of 175 and 3500 respectively. The Institute (RTI) organized focused trainings on special topics for rubber plantation and rubber industry sectors. Six new general training programmes on special topics were introduced in the plantation sector. Tailor made programmes on latest agro-management practices were organized for large estates. Decentralized training on selected topics were conducted in South 窶適arnataka and other parts of the State. Special training on Rubber Technology for BSF employees and outstation training on promotion and knowledge transfer for value addition of rubber in Tripura for entrepreneurs and students were organized in the Rubber Industry sector. A faculty improvement programme in rubber technology was conducted for teaching faculty in rubber technology from Govt. Polytechnics in Kerala. Training on Total Quality Management on ISO 9001:2008, regulatory measures in processing and transaction of NR and training on Agriculture

Annual Report 2013-14

International outstation training on Rubber Cultivation, Latex Harvest Technology and Ancillary income generation from rubber plantation was conducted for executives of M/s Vizara Plantation, Malawi, Central Africa.

SPICES Spices Board was constituted as a statutory body on 26th February, 1987 under Section (3) of the Spices Board Act, 1986. The Board is headed by a Chairman with its head office at Kochi. Spices Board is responsible for the development of cardamom industry and export promotion of 52 spices listed in the schedule of the Spices Board Act, 1986. The primary function of the Board includes production development of small and large cardamom, promotion, development and regulation of export of spices. The Board is also responsible for implementing programmes for development of spices in North Eastern region and organic spices in the country.

Technical officers and staff were given training on competence development in technical service delivery. Officers and staff of RTI were given training on ISO 9001: 2008 and internal audit. Training on planning for retirement and yoga, meditation and healthcare were organised for Rubber Board employees. E-governance was given special emphasis in the course for training for administrative staff. Refresher training to drivers and farm workers on attitude and duty consciousness was conducted with the faculty support of The activities of the Board include issue Motor Vehicle Department and Central Board of certificate of registration as exporter of of Workers Education. Chart 8.4 India Spice Exports through 2009-10 to 2013-14 Chart 9.4 Trend in Export of Spices From India 900000

2500.00

800000

Qty(M.T)

600000 1500.00

500000 400000

1000.00

300000 200000

Value(Mil.US$)

2000.00

700000

500.00

100000

Year

20 13 -1 4

20 12 -1 3

20 11 -1 2

20 10 -1 1

0.00 20 09 -1 0

Quantity

VALUE

Source: Spices Board

Annual Report 2013-14

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Commodity Boards and other Development Authorities, Institutional Trade Facilitation and Public Sector Corporations

Marketing were organized for persons from rubber trading and processing companies promoted by Rubber Board. Extension Officers were trained on ICT based extension delivery, expert system in agriculture, social networking tools and devices for technology transfer, computer hardware maintenance and Corynespora disease management. Imparted training regularly on capacity building for RPS leaders and also conducted training on RPS accounts maintenance at Regional centres.

Chapter-8

spices; undertaking programmes and projects for promotion of export of spices like setting up of spices parks, support of infrastructure improvement in spices processing, assisting and encouraging studies and research on medicinal properties of spices, development of new products, improvement of processing, grading and packaging of spices; striving towards stabilization of prices of spices for export and controlling & upgrading quality for export (including setting up of regional quality evaluation labs and training centers). With regard to cardamom, registered auctioneers and dealers facilitate the domestic marketing through e-auctions. The Spices Board also does the research activities on cardamom. Export : Indian spices exports have been able to record strident gains in both volume and value terms during 2013-14. During the current year the Spices Board has shown an increase of 12% in volume and 13% in rupee terms of value compared to last year. The total estimated export of spices during the period has also crossed Rs.13,000 crore marks. The export had gone up from 5,02,750 MT valued at Rs.5560.50 crore (US$ 1173.75 million) in 2009-10 to 8,17,250 MT valued at Rs.13735.39 crore (US$ 2267.67 million) in 2013-14. Import : The import of spices into India largely takes place for value addition and re-export except items such as clove, cassia, star anise, poppy seed, etc., which are mainly used for domestic demand. The estimated import of spices during 2013-14 was 1,25,750 MT valued Rs.2550.50 crore (US$ 421.10 million). Production : The estimated production of cardamom (small) and cardamom (large) in

196

India during 2013-14 is 14795 MT and 4410 MT respectively. Cardamom (small) : Although, there were incidences of diseases due to heavy rain all over cardamom growing tract a 6% increase in production of cardamom during 2013-14 over 2012-13 is achieved. Cardamom (large) : Fairly humid and warm weather prevailed during this season in cardamom (large) track and with sufficient rain has resulted in marginal increase of 6% in production of cardamom (large) during 2013-14 when compared to last year. Plan Schemes of the Spices Board In the XII Five Year Plan, the on-going schemes of XIth Plan have been integrated into a single scheme titled â&#x20AC;&#x153;Export Oriented Production, Export Development & Promotion of Spicesâ&#x20AC;?, as a Central Sector Plan Scheme of Spices Board to be implemented from 2012-13 to 2016-17 at a cost of Rs.670.00 crores with the following five components : Table : 8.7 S. No. I

Components

Export oriented production

Plan allocation (Rs. in crore) 286.00

II Export development and promotion

299.00

III Export oriented research

40.00

IV Quality improvement

35.00

V Human resource development & works

10.00

TOTAL

670.00

Annual Report 2013-14

Programmes schemes

supported

under

Plan

During 2013-14, the Spices Board spent an amount of Rs 94.34 crores on various schemes e.g. export development and promotion, export oriented research, quality improvement, and HRD & works. a.

E xport oriented production and post harvest improvement of spices

The main objective of this scheme is to improve the productivity and production of cardamom (both small & large) and produce quality spices for export. During 2013-14, an area of 2125 hectares were brought under replantation of cardamom (small) with an expenditure of Rs.6.866 crore. In the case of Cardamom (large), 1045 hectares were brought under replanting with an expenditure of Rs.1.58 crore during the period under report. The Board had also continued the programmes like irrigation and land development, production of planting materials, improved cardamom curing devices, modified Bhatti etc., during the period. The post-harvest improvement

Annual Report 2013-14

programmes for spices other than cardamom like supply of polythene sheets, IPM kits, turmeric boilers, mint distillation units, threshers for seed spices and pepper, organic cultivation of chilli and seed spices were also continued. The development programmes for lakadong turmeric, ginger, naga chilli, farmersâ&#x20AC;&#x2122; study tour etc., specifically targeted for the farmers of NE were also implemented during 2013-14. In all these areas, the Board had rendered all technical guidance through field visits, farmers meetings, quality improvement training programmes, seminars etc. b.

E xport development & promotion of spices

To encourage higher end value addition in spice processing and scientific facility for ensuring quality and food safety, the market development activities of the Board have its focus on technology & process upgradation. The major thrust areas are Infrastructure development, research on new applications of spices & new product development, promotion of Indian Spice Brand abroad, setting up of Infrastructure for common cleaning, grading, processing, packing, storing facilities (Spices Park) in major spice growing/ marketing centers, promotion of organic spices/GI spices etc. Special programmes are proposed for North East Entrepreneurs. The spice industry is facilitated through its Regional offices spread all over India. The Board also undertakes programmes both within the country and abroad, the concepts and themes are highlighted through the literature that is produced. The exhibitions, field publicity programmes, campaigns, training programmes for farmers, exporters, trade and consumers require back up through

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Commodity Boards and other Development Authorities, Institutional Trade Facilitation and Public Sector Corporations

The XII Plan scheme / programmes are visualised with the objective of enhancing spices export from the country by making in-roads into building processing capacities and capabilities, expansion of markets, increasing production and productivity of cardamom (small & large), modernising the spice cultivation and post-harvest operations thereby attracting youths to the spices cultivation, promoting organic cultivation, addressing food safety concerns of importing countries, market and productivity driven research, skill development, transfer of technology etc.

literature to be produced in various Indian and international languages. The Board participates in international trade fairs every year. During the year 201314, Board participated in 13 international exhibitions. Registered spice exporters were encouraged to co-participate through the Boards stall and promote spices and spice products. c. Export oriented research

Chapter-8

Cardamom (Small) In small cardamom, research programmes are envisaged on varietal improvement, bio technological interventions. Integrated nutrient / pest and disease management. The national repository for cardamom genetic resources maintained in the Institution conserves 800 small cardamom accessions and 12 allied genera and carried out the trials on performance evaluation of different cardamom clones under the Co-ordinated Varietal Trial of All India Co-ordinated Research Project on Spices (AICRPS), evaluation of released varieties of black pepper, hybridization and their evaluation in small cardamom etc. Multiplied the released / landraces / improved varieties of small cardamom & different herbal spices such as rosemary, thyme, celery, mint, oregano, horse radish, salvia etc., for supplying to the needy growers. Studies on the management of rot diseases in cardamom were under taken in various locations in the cardamom tract. As part of advisory services, 1835 soil samples were analyzed for nutrient status and given recommendations for fertilizer application. Farm gate level cardamom samples (121) collected from different zones of cardamom

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tracts were subjected to oil profile and pesticides residue studies. As part of Transfer of Technology, organized 19 training programmes on production technology of cardamom and black pepper apart from ten spice clinics / scientist farmers interface. Cardamom (large): Spices Board undertook various studies and researches during the year in relation to the large cardamom e.g. Germplasm survey in West Sikkim, diversity studies on 50 accessions including all released varieties, response of large cardamom to foliar application of Zinc, manganese and magnesium, alternate host for major pests of large cardamom, and disease survey in 48 numbers of large cardamom plantations covering sixteen locations. Nine training/ awareness programme on various aspects of large cardamom cultivation were also conducted for farmers / extension officers. d. Quality improvement and strengthening of quality evaluation laboratory The Quality Evaluation Laboratory of the Spices Board provides analytical service to the spice industry and monitors the quality of spices produced and processed in the country. It also undertakes the analysis of consignment samples under the mandatory inspection of Spices Board. During 201314 the laboratory analysed 83,671 Samples for various parameters including pesticide residues, Aflatoxin, illegal dyes etc. in chilli and chilli products. The laboratory conducted 4 training programs on the analysis of â&#x20AC;&#x153;Spices and Spice productsâ&#x20AC;? for Physical, Chemical, Residual and Microbiological parameters , and a total of 64 members including technical personnel from various Spice Industries,

Annual Report 2013-14

During the year, the Regional Quality Evaluation Laboratory at Chennai got the NABL accreditation. Thus, 4 of Spice Board’s Quality Evaluation Laboratorie snow have the NABL Accreditation and two others are in the process of getting the accreditation. e.

uman resource H capital works

development

Regular training and retraining of the staff of the Board in their functional areas, training on cultivation aspects, post harvest handling, processing etc., to growers and exporters in the spice industry are programmes under the scheme. Capital works including new construction, maintenance of Board’s own building etc. are also envisaged under the programme. f.

eplantation and rejuvenation of R pepper in Wayanad district in Kerala and NE

The scheme for development of pepper in Wayanad district of Kerala & North Eastern States was sanctioned by Ministry during October 2009. During 2013-14 an area of 3023 ha & 602.66 ha was covered under replantation / rejuvenation programme at Wayanad district in Kerala and in NE states respectively. Since inception, an area of 15291.31 ha & 2269.79 ha has been replanted in Wayanad & NE states respectively under the programme. The programme of pepper production in Wayanad district of Kerala and NE has been discontinued from 2014-15.

Annual Report 2013-14

roject under National Horticulture P Mission for development of pepper in Idukki district of Kerala

As an agency concerned about the plight of Indian pepper industry and in response to the invitation from various quarters of the industry and directions from the Ministry of Commerce, Spices Board had worked out a proposal on production development of pepper in Idukki District of Kerala in line with NHM guidelines with financial assistance from NHM. The project had been approved for implementation for a period of 5 years from 2009-10 at a total outlay of Rs.230.58 crores with assistance from NHM to the tune of Rs.120.00 crores. Since inception, 21396 Ha have been brought under replantation/ rejuvenation under the project. During 201314, the fund of Rs.8.00 crores allocated by the NHM was utilized for clearing the backlog payments to farmers.The pepper development programme in Idukki district of Kerala has been completed as on March 2014. Major initiatives in 2013-14: Major initiatives taken by the Spices Board during the year included setting up of Spices parks in various states, establishing regional Quality Evaluation Laboratories at Mumbai, Delhi, Chennai, Guntur and Tuticorin, initiating electronic auction for cardamom, organising World Spices Congress in India, G I certification for specific spices, and constitution of a Codex Committee on Spices at India’s behest. Spices Park : The Spices Board is in the process of establishing crop specific Spices Parks in major production/market centers. The Board

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Commodity Boards and other Development Authorities, Institutional Trade Facilitation and Public Sector Corporations

IPC & FSSAI (state Govt. Labs) attended the program.

Chapter-8

has completed the establishment of Spices Park at Chhindwara (Madhya Pradesh), Puttadi (Kerala), Jodhpur (Rajasthan), Guna (Madhya Pradesh), Sivaganga (Tamil Nadu) and Guntur (Andhrapradesh) are completed. The establishment of Spices Park at Kota (Rajasthan), Rae Bareli (UP) are in progress. Primary objective of establishing Spices Park is to empower the farmers with better price realization and wider markets for their produce. The farmers can utilize the common infrastructure facilities for cleaning, grading and steam sterilization which will ensure the quality of the product and thus a higher price. The scientific packing and warehousing facilities in the park and the quality testing facility in the laboratory will improve the overall quality of spices produced in the locality. Spices Park is a well-conceived approach to have an integrated operation for cultivation, post harvesting, processing for value-addition, packaging and storage of spices and spice products. Regional Quality Evaluation Laboratories: The Central Quality Evaluation Laboratory of the Board at Cochin has been extending its activities to accommodate more samples for analysis of various parameters. In addition to this, regional laboratories have been set up in Mumbai, Delhi, Chennai, Guntur and Tuticorin. The establishment of the Quality Evaluation Lab at Kolkatta and Kandla are in progress. All the regional quality evaluation laboratories of the Board are established under the financial assistance from ASIDE scheme. All the labs are working successfully on an average around 90000 samples are handled by these labs.

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Electronic auction for cardamom : The Board had established E-auction system for cardamom (small) in Puttady (Kerala) and Bodinayakanur (TN). The e-auction system established by the Board for cardamom (small) is working successfully. In addition to the e-auction system, there are manual auction centres established in the states of Karnataka & Mumbai. Cardamom (large) auctions are being conducted in Sikkim. Registration & Licensing : As a regulatory body, Spices Board has been issuing Licenses for Cardamom Auctioneers and Dealers and Certificate of Registrations to the exporters of Spices. These Licenses and Certificates are issued for a block period of three years. During the year 2013-14, licenses were issued to 55 Cardamom Dealers and to four Cardamom Auctioneers. 1266 Certificates of Registrations were also issued to spices exporters during the same period. During the year, auctioneer license was issued to the State Trading Corporation, in the place M/s. STCL who has discontinued the business. Exporter Award : Spices Board has instituted Export Awards & Trophies to honor the exporters of spices who have excelled in their exports of spices in various categories every year. Shri. Anand Sharma, Hon'ble Union Minister for Commerce and Industry, gave away the Trophies/ Awards and Citations to the exporters for years 2009-10, 2010-11 & 2011-12 in a function organised on 26th April, 2013 at Trivandrum. International Cooperation: Establishment of CTC Cell : Food safety and supply chain management are matters of concern all over the world. With new stringent legislation

Annual Report 2013-14

being adopted in importing countries, implementation of Food Safety in supply chain management in spices has become matter of paramount importance. In order to address this challenge of quality and food safety, the Spices Board in collaboration with Joint Institute for Food Safety and Applied Nutrition (JIFSAN), University of Maryland, USA and Confederation of Indian IndustriesFood and Agriculture Center of Excellence (CII-FACE) has established a Collaborative Training Center (CTC) for capacity building on food safety in the supply chain management in spices and botanical ingredients and planned three phase training programme. During the year 2013-14, CTC cell conducted training programmes in Sikkim, Mizoram and Kerala for over 210 participants. Signature Stall : A Spice signature Stall was opened at Cochin at Lulu Shopping Centre

Annual Report 2013-14

for selling Indian spices and spices products under the 'Flavouit' brand recognition. This shop is also a resource centre for Indian spices from where the local and the visiting tourists can gather information and realise the various nutraceutical, health applications of spices and its products. The main objective of the stall is to sell the farmers' produce directly through the stall thereby avoiding the many stages of middlemen. Training to NE Entrepreneurs : In order to create awareness on Spice Export business opportunities among the domestic spice traders and the educated youths of North Eastern States, Spices Board in collaboration with Indian Institute of Entreprenurs, conducted a two days Training program on 'HOW TO START SPICES EXPORT BUSINESS FROM N.E' for the entrepreneurs and other food industry segments in Assam, Arunachal

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Commodity Boards and other Development Authorities, Institutional Trade Facilitation and Public Sector Corporations

Presentation of Trophies & Awards for excellence in Exports of spices and productivity of cardamom & vanilla held on 26th April 2013 at Kovalam, Trivandrum â&#x20AC;&#x201C; Shri Anand Sharma, Hon'ble Union Minister of Commerce & Industry addressing the gathering

Pradesh, Meghalaya, Nagaland & Tripura during 2013-14 period.

Chapter-8

IIPM study on Revamping Cardamom marketing system : With an objective to revamp the prevailing marketing system of cardamom in India, the Board had entrusted Indian Institute of Plantation Management to conduct a study on the Movement of Cardamom with respect to Domestic Market structure, growth and future scenario. The final report on the study was submitted in September, 2013. WTO Chair on Spices : In order to facilitate global spice trade and to deal with the trade negotiations with multilateral, regional and bilateral trade bodies, the Board needs to have frequent interfaces with WTO in its day-today activities. For preparation of country dossiers and to deal with the WTO matters and to provide advice to Spices Board, a WTO Chair on Spices has been set up at the Department of International Relations Central University of Kerala, Kasargodu. The Chair comprises a Chair Professor, one Research Officers and two Research Assistants.

the Codex Alimentarius Commission (CAC) agreed, at its 36th session held at Rome from 1-5 July, 2013, to form an exclusive Codex Committee on Spices and Culinary Herbs (CCSCH) with a view to elaborate worldwide standards for spices and culinary herbs in their dried and dehydrated state in whole, ground, and cracked or crushed form, and to consult, as necessary, with other international organizations in the standards development process to avoid duplication. India has now initiated strategies for harmonization of global standards for quality parameters in spices and culinary herbs taking into consideration the international and national legislations and other available standards and specifications.

Constitution of Codex Committee on Spices & Culinary Herbs : Following Indiaâ&#x20AC;&#x2122;s lead,

The Spices Board India hosted the first Session of the Codex Committee on Spices and Culinary Herbs (CCSCH1) from 11th -14th February 2014 in Kochi, Kerala. In just seven months after the formal approval, the Secretariat of the CCSCH operating from the Spices Board could rope in the participation of many countries from far and wide, bringing to its fold 107 delegates from 40 countries and seven observer organizations in close liaison with the Codex Secretariat in Rome and the National Codex Contact Point of India

Inaugural Session of CCSCH-1

CCSCH in Session

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Annual Report 2013-14

in FSSAI. An exclusive website for the CCSCHwww.ccsch.in has also been created.

Price Stabilisation Plantation crops

GI Registration of Spices : Spices Board has obtained Geographical Indication (GI) registration for Byadagi chilli. This is in addition to the GI registration obtained for Malabar Pepper, Alleppey Green Cardamom, Coorg Green Cardamom and Guntur Sannam chilli.

Price Stabilisation Fund (PSF) Scheme was launched by Government of India in April 2003 for an initial period of 10 years, against the backdrop of decline in international and domestic prices of tea, coffee, rubber and tobacco causing distress to primary growers. The growers of these commodities were particularly affected due to substantial reduction in unit value realization for these crops, at times falling below their cost of production. The objective of the Scheme is to safeguard the interests of the growers of these commodities and provide financial relief when prices fall below 20% of the moving average of 7 years’ international prices.

World Spice Congress : The XII World Spice Congress was conducted at Cochin during 16 – 19th February 2014 with the theme of ‘Sustainability and Food Safety: Global Initiatives’. 275 overseas delegates and 410 Indian delegated were participated in the Congress. The congress bring together global thought leaders policy defining body as well as leading players from the spice cropping industry came into one global platform.

Annual Report 2013-14

Fund

Scheme

for

Enrolment of Growers : Out of the total target of 12.77 lakh growers (growers having

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Commodity Boards and other Development Authorities, Institutional Trade Facilitation and Public Sector Corporations

Shri. J.S. Deepak, Additional Secretary, Ministry of Commerce & Industry inaugurates the WSC – 2014

landholding up to 4 ha), the total enrolment under the Scheme is 46,243, out of which 18,919 are rubber growers, 11,594 coffee growers and 15,730 tea growers. Tobacco growers did not join the Scheme. PSF Corpus Fund as on 31.03.2014 : PSF Scheme originally envisaged a Corpus Fund of 500 crores, out of which Rs. 482.88 crore was to be contributed by Government of India and Rs. 17.12 crore by the growers by way of nonrefundable entry fee. As on 31 March 2014, deposits in the PSF Corpus Fund including net accrued interest were Rs 918.10 Crores out of

which Rs 432.88 crore had been contributed by GOI, Rs. 2.67 crores by Growers by way of entry fee and Rs. 482.55 crore is accrued interest. Announcement of Price Spectrum Bands: Since the launch of the Scheme in April 2003, the PSF Trust has announced Price Spectrum Bands for 2003, 2004, 2005, 2006, 2007, 2008, 2009, 2010, 2011 and 2012. The likely financial assistance under PSB 2003 through PSB 2012 stood at 6.22 crore against which Rs 1.53 Crore was released to eligible growers.

Table: 8.8 Year wise Price Spectrum Band and Cumulative committed Financial Assistance

Chapter-8

(Rs in crore)

Commodity PSB PSB PSB PSB PSB PSB PSB PSB PSB PSB Total 2003 2004 2005 2006 2007 2008* 2009 2010* 2011 2012* Rubber 0 0 0 0 0 0 0.95 0 0 0 0.95 Coffee 0.82 0.58 0 0 0 0 0 0 0 0 1.40 Tea 0.09 0.73 0.74 0.75 0.77 0 0 0 0.79 0 3.87 Total 0.91 1.31 0.74 0.75 0.77 0 0.95 0 0.79 0 6.22 *boom year for all crops

Personal Accident Insurance Scheme (PAIS) : A Personal Accident Insurance Scheme having a cover of 25,000 was started for the growers of Tea, Coffee, Rubber and Tobacco from 1.1.2005. The scheme covered the growers in the sectors of Tea, Coffee, Rubber and Tobacco and Spices (chillies, cardamom, ginger, turmeric and pepper) having plantations up to 4 hectares and all plantation workers working on these plantations regardless of the size of holdings. The insurance cover under the scheme is up to Rs. 1.00 lakh per person, the premium for which at Rs. 22.06 is shared between the beneficiary and the PSF Trust in the ratio of 50:50.An amount

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of Rs. 42.24 lacs has been released towards premium under PAI Scheme providing personal insurance cover to 457772 growers/ workers (Cumulative including renewals each year) since its inception in 2005. During 201314, the Scheme was implemented for a short period upto 30.09.2014 and an amount of Rs 1.20 lacs was released as matching premium to cover 10913 eligible growers and workers from the sectors of Tea, Coffee and Tobacco. Modified PSF Scheme : The approved period of the PSF Scheme concluded on 30.09.2013 (with an extended period of six months). Following extensive consultations, an exercise

Annual Report 2013-14

The Agricultural and Processed Food Products Export Development Authority (APEDA) The Agricultural and Processed Food Products Export Development Authority (APEDA) was established by the Government of India under the Agricultural and Processed Food Products Export Development Authority Act passed by the Parliament in December, 1985. The Authority, with its headquarters at New Delhi, is headed by a Chairperson. APEDA has been serving the agri-export community for 27 years. In addition to 5 Regional offices, APEDA has setup 13 Virtual Offices at Thiruvananthapuram (Kerala), Bhubaneshwar (Orissa), Srinagar (J&K), Chandigarh, Imphal (Manipur), Agartala (Tripura), Kohima (Nagaland), Chennai (Tamil Nadu), Raipur

(Chattisgarh), Ahmedabad (Gujarat), Bhopal (Madhya Pradesh), Lucknow (Uttar Pradesh) and Panaji (Goa). APEDA has been entrusted with the responsibility of export promotion and development of 14 agricultural and processed food product groups listed in the Schedule to the APEDA Act. In addition to this, APEDA has been entrusted with the responsibility to monitor the import of sugar as well. APEDA has been actively engaged in the development of markets besides upgradation of infrastructure and quality to promote the export of agro products. In its endeavour to promote agro exports, APEDA provides financial assistance to the registered exporters under its Schemes for Market Development, Infrastructure Development, Quality Development and Transport Assistance. Export Performance: The export of APEDA products for the period April-March 2013-14 is as below:

Table: 8.9

Value Rs. in Lakhs

Product Group

Export 2012-13

Export 2013-14

Floriculture & Seeds

77116.98

85867.42

11.35

Fruits & Vegetables

658345.70

948173.83

44.02

Processed Fruits & Vegetable

436841.74

560994.81

28.42

Livestock Products

2013210.55

3151939.33

56.56

Other Processed Foods

3227708.92

2428955.01

-24.75

Basmati Rice

1940938.89

2930012.11

50.96

Non-Basmati Rice

1444880.64

1749316.24

21.07

Wheat

1052900.19

925710.59

-12.08

818061.46

713237.03

-12.81

11670005.06

13494206.37

15.63

Other Cereals Total

Growth in %

Source : DGCIS â&#x20AC;&#x201C; Principal commodities data

Annual Report 2013-14

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Commodity Boards and other Development Authorities, Institutional Trade Facilitation and Public Sector Corporations

has now been initiated with a view to modify the existing Price Stabilisation Fund Scheme and evolve a comprehensive insurance based scheme that could mitigate both, the price and production risks faced by the growers.

The provisional export data for the period April-March, 2013-14 shows an overall positive growth of 15.63% over the same period of previous year.

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The project of M/s. Gujarat State Agricultural Marketing Board (GSAMB), Gandhinagar for setting up of processing facility for export of mango pulp at Kodinar for financial assistance of Rs.800.00 lakhs has been sanctioned for the current financial year.

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The project of M/s. Assam State Agriculture Marketing Board, (ASAMB) Assam for establishment of Pack House for fruits and vegetables at Karimganj District, Assam for financial assistance of Rs.800.00 lakhs has been sanctioned for the current financial year.

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The project of M/s. Punjab State Cooperative Supply and Marketing Federation Limited (MARKFED), Chandigarh for setting up of modern food processing complex at Markfed canneries, Chuharwali Village, District Jalandhar, Punjab by Markfed, Chandigarh for financial assistance of Rs.1000.00 lakhs has been sanctioned for the current financial year.

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The project of M/s. Gujarat State Agricultural Marketing Board (GSAMB), Gandhinagar for setting up of common infrastructure project for processed foods at Gandevi, Gujarat for financial assistance of Rs.800.00 lakhs has been sanctioned for the current financial year.

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The project of M/s. Tamilnadu Horticulture Development Agency (TANHODA), Chennai for setting up of IQF Plant at State Horticulture Farm, Neejur, Krishnigiri for financial assistance of Rs.742.00 lakhs has been sanctioned for the current financial year.

Chapter-8

APEDA SCHEMES: On the advice of the Planning Commission, the five XI Plan Schemes of APEDA have been integrated into a single scheme titled “Agriculture Export Promotion Plan Scheme of APEDA” for implementation during XII plan. The main objective of the scheme is to enhance the capability of Indian exporters of agro products and supporting them in realizing their export potential. The benefit of the scheme would help in catalyzing the efforts of the exporting community through need based interventions by APEDA at each stage of the supply chain. The Scheme has following components:

- Scheme for Market Development - Scheme for Infrastructure Development - Scheme for Quality Development - Transport Assistance Scheme The Government has approved the above plan scheme for the XII plan period at projected outlay of Rs. 1100 crores. INFRASTRUCTURE DEVELOPMENTAL ACTIVITIES: •

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The project of M/s. Maharashtra State Agricultural Marketing Board (MSAMB), Pune for setting up of common infrastructure facility for fresh fruits and vegetables and trade facilitation centre at APMC, Vashifor financial assistance of Rs. 247.80 lakhs has been sanctioned for the current financial year.

Annual Report 2013-14

•

The project of M/s. Maharashtra State Warehousing Corporation (MSWC), Pune for setting up of cold storage in Gultekdi, Pune, Maharashtra for financial assistance of Rs.800.00 lakhs has been sanctioned for the current financial year. The project of M/s. Maharashtra State Warehousing Corporation (MSWC), Pune for setting up of cold storage facility in Koregaon, Distt. Satara, Maharashtra for financial assistance of Rs. 588.09 lakhs has been sanctioned for the current financial year. The project of M/s. Krishi Utpadan Mandi Parishad (KUMS) for setting up of processing unit for export of frozen fruits and vegetables with IQF at Spices Park, Rampur Kalan, Sahaspur, Dehradun, Uttarakhand for financial assistance of Rs.800.00 lakhs has been sanctioned for the current financial year. The project of M/s. Krishi Utpadan Mandi Parishad (KUMS) for setting up

Annual Report 2013-14

of CA Store at Bhatwari, Uttarkashi for financial assistance of Rs.687.46 lakhs has been sanctioned for the current financial year. Quality Developmental Activities: 1) Recognition of laboratories and HACCP implementation and certification agencies

a) 24 laboratories were recognized including four newly recognized laboratories for sampling and analysis of APEDA scheduled products for exports. 4 recognized laboratories in the private sector and 1 National Referral Laboratory at NRC Grapes Pune were upgraded with high precision analysis equipments. b) 8 certification agencies and 3 implementation agencies were recognized for certification and implementation of HACCP during the period.

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Commodity Boards and other Development Authorities, Institutional Trade Facilitation and Public Sector Corporations

Mechanized Tapping Knife Development – Cash award distributed to four best innovators

2) Procedures of exports through control of agrochemical residues and aflatoxins:

Chapter-8

a) Procedures of export of fresh table grapes to the European Union through control of residues of chemicals to ensure food safety compliances for the export season 2013-14. b) Procedures for control of aflatoxins for exports of peanuts and peanut products from India to ensure food safety compliances of the importing countries. c) Procedure for issue of Health Certificate for exports of okra to EU. 3) Procedures of recognition of processing units:

a) Procedure for grant of recognition certificate to peanut processing units for export of peanuts. b) Procedure for grant of recognition certificate to peanut shelling & or grading units for export of peanuts. c) Procedure for grant of recognition certificate to godowns/storage for export of peanuts. 4) Standardization and harmonization: a) Grading and Marking Standards of eight fruits and vegetables were developed totaling 51 Grading and Marking Standards for fruits and vegetables under Agmark. Three draft standards are in process of development and are at the stage of discussions with the stakeholders during period under report. b) Contributed to national interpretation of Good Agricultural Practices (GAP) and

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Global GAP being a member of National Technical Working Group of Quality Council of India. c) Participated in 7th Session of Codex Committee on Contaminants in Food Moscow 8-12 April 2013. Initiated new work proposals on establishments of aflatoxins levels and methods of sampling and analysis in ready-to-eat peanuts. Participation In International & National Events: Summer Fancy Food Show, Washington DC, USA from 30th June to 2nd July 2013: APEDA participated in the Summer Fancy Food Show held in Washington DC, USA from 30th June to 2nd July 2013and taken an area of 2000 sq.ft. Eleven exporters participated under the banner of APEDA Africa Big Seven/Saitex, Johannesburg, South Africa from 30th June to 2nd July, 2013: APEDA participated in the Africa Big Seven/Saitex, Johannesburg, South Africa from 30th June to 2nd July, 2013 with a total space of 54 sq. mtrs. Ten exporters participated in the event and displayed their product samples. APEDA displayed a range of food products which included basmati rice, fresh mangoes, processed foods, pickles and chutney, snack foods, etc. APEDA organized promotion of Indian Basmati Rice and fresh mangoes. 12th Pro-Food/Pro-Pack and Ag-Biz 2013, Colombo, Sri Lanka from 23rd to 25th August, 2013 : APEDA participated in 12th Pro Food/Pro Pack show at the Srinimavo Bandaranaike Memorial Exhibition Centre, Colombo, Sri Lanka from 23rd to 25th August, 2013.

Annual Report 2013-14

Food and Hotel 2013, Bangkok, Thailand from 4th to 7th September, 2013: APEDA participated in Food and Hotel 2013, Bangkok, Thailand from 4th to 7th September, 2013. APEDA booked 90 sq. mtr. space and eight exporters participated in the event. Six leading exporters sent their product samples for display. Ministry of Food Processing Industries also participated with APEDA in the event. Saudi Agro Food, Riyadh, Saudi Arabia from 15th to 18th September, 2013: APEDA participated in Saudi Agro Food exhibition from 15th to 18th September, 2013. APEDA has taken an area of 150 sq. mtr. at a strategic location ANUGA 2013, Cologne, Germany from 5th to 9th October, 2013: APEDA actively participated in ANUGA 2013, the largest food exhibition in the world, held from 5th to 9th October, 2013in Hall No. 11.3. APEDA showcased India through the aesthetically designed pavilion of 1,538 sq. mtr. which attracted a large number of trade visitors and entrepreneurs. More than 70 companies participated and displayed their products in the exhibition Food & Hotel China (FHC), Shanghai, China from 13th to 15th November, 2013: APEDA participated in the FHC, China held from 13th to 15thNovember, 2013. APEDA represented India with five exporters and trade association that displayed a range of food products like,

Annual Report 2013-14

animal products, processed foods, pickles and chutneys, snacks etc. SIAL Middle East 2013, Abu Dhabi, UAE from 24th to 26th November, 2013: APEDA represented India for the first time with 18 exporters and two trade bodies in the event. Developmental Promotion:

Activities

Organic

Organic farming in India has grown at a steady pace after the implementation of NPOP in 2001 by the Ministry of Commerce and Industry. Today India organic products have made their mark in the global market and are poised to reach new heights. Area and production Certification

under

Organic

During 2013-14, area under organic certification was around 5.33 million ha (till 15 Dec 2013)including the forest area of 4.57 million ha. The total organic production was 0.63 million MT (till 15 Dec 2013) Major products exported During the year 2013-14, India had exported 135 agricultural and food products under 19 Categories realizing value of Rs. 845.20 Crores till 15 Dec 2013. The volume of total organic products was 115559.325MT The major countries where organic products were exported were European Union followed by USA and Canada. The other destinations of export of organic products were Switzerland, UAE, Australia, Middle East countries and Asian countries. The major products exported were Tea, Pulses,Sugar, Basmati Rice, Oilseeds (Sesame,

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Commodity Boards and other Development Authorities, Institutional Trade Facilitation and Public Sector Corporations

Abastur, Mexico from 26th to 29th August, 2013: APEDA participated in Abastur, Mexico from 26th 29th August, 2013and taken 100 sq. mtr. area. Ten exhibitors personally participated under the banner of APEDA.

Soyabean), Spices, Cotton, Medicinal Plants, Processed Food and Dry Fruits. New Standards in the area of Aquaculture, Textiles & Animal Husbandry Under NPOP The standards for Aquaculture, Animal Husbandry & Textiles under NPOP are approved by full term NSC and are expected to be notified by DGFT shortly.

Chapter-8

Participation in International Organic Trade Fairs APEDA has been participating and representing as India Pavilion in Biofach Germany since 2001 to promote export of organic products. This year also, APEDA participated in BioFach Germany 2013 held from 13-16 February 2013 at Nuremberg Messe, Nuremberg, Germany. APEDA had booked 561 sq. mts. Indian Pavilion was designed with the aim of promoting Indiaâ&#x20AC;&#x2122;s brand image specific to organic products. Indian pavilion was well constructed, decorated and brightly lit and was appreciated by all the visitors. 34 exporters exhibited their organic products under the Indian pavilion along with Tea Board of India and Spices Board. Other state Government departments i.e. Department of Agriculture, Karnataka and Uttarakhand Commodity Board also participated in India Pavilion. Strengthening of Tracenet, a web based traceability system developed for organic products After the implementation of Tracenet in June 2010, authentic information related to production, certification and export of organic products could be provided. During the year

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2013-14, monitoring through tracenet was further strengthened. Several measures were taken to ensure credibility of export of Organic products. Developmental Activities In North East Region: Export Development Fund For North Eastern Region (EDF-NER) : Following the announcements made by the Prime Minister in respect of measures the development of exports from the North-Eastern region in Shillong on January 21-22, 2000, an Export Development Fund (EDF) has been set up with the objective of using the resources for the development of exports from the region. The objective of the scheme is to assist specific activities for promotion of exports from the North-Eastern region of the country including Sikkim. All activities, which have a linkage with the exports from the region and are designed to help exports, shall be eligible for assistance from the fund. The scheme covers Setting up of pioneering/ pilot projects aimed at exports , Provision of equipment and machinery for the pioneering pilot projects aimed at exports , Creation of Common facilities for facilitating exports ,Facility for testing and standardization as well as quality improvement of export products, Funding related to the exchange of trade delegations, Any other activity as notify by the department of Commerce having a bearing on export promotion in the North-East. The eligible agencies include Central/State Governments, Public Sector undertakings of Central/State Government, Other agencies of Central/State Governments, Export Promotion Councils/Commodity Boards, Apex Trade bodies recognized under

Annual Report 2013-14

Fund Released: So Far DoC had placed an amount of Rs 58.70 Crs at the disposal of APEDA of which 61 projects have been funded to the tune of Rs. 52.60 Crs including assistance extended to exporters on Inland Transport Assistance scheme for the North Eastern Region. IT related achievements: 1. As per the DGFT Notification no. 28 (RE2012)/2009-2014 dated 3rd January, 2013 export of Groundnuts (Peanut) is permitted subject to compulsory registration of contract with APEDA, along with controlled aflatoxin level certificate given by the Laboratories authorized by APEDA. The Peanut.net Traceability System was updated as per the procedure laid down in APEDA to accommodate quality requirements for export of PPP to all the countries. 2. Transport Assistance web based software for the disbursement of APEDA scheme has been suitably modified to accommodate charges made in XII Plan. The application software was updated with additional features like processing of files in FIFO method and payment of subsidy claim through RTGS in order to speedy disbursement of the claim.

Annual Report 2013-14

3. The Grapenet system was updated with the latest list of Pesticides and Agro chemicals residues testing of Grapes consignments for EU for the year 2013-14. Other Sectoral Developmental Activities: Horticulture Sector: Success has been achieved in opening up the Chilean market for Indian grapes and walnuts during the year. This opens up avenues for exporters for the 2014 season. Regular follow up with Ministry of Agriculture and USDA-APHIS regarding the PRA for market access for Pomegranates to USA with Irradiation as a mitigation measure. For market access for Indian table grapes in Australia, the Pest Risk Analysis (PRA) has reached an advanced stage and it is hoped that by the end of this year final notification by Australia may be issued. Follow up has been done on market access requests for Walnut, grapes, pomegranates, okra and brinjal in South Korea, Grapes, Walnuts, Banana and Litchi in Chile, Pomegranate and okra in New Zealand and Grapes to Vietnam. No incidence of excedence of any pesticide residue tolerance was reported during the grape season 2013. To make the â&#x20AC;&#x153;Grapenetâ&#x20AC;? traceability System more robust, consultations with trade and stakeholders were held and the RMP document was modified to include 181 agro chemicals for testing prior to shipments to EU for the 2014 season. There were reported instances of exceedence of MRLs in green chilli in Saudi Arabia. The

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Commodity Boards and other Development Authorities, Institutional Trade Facilitation and Public Sector Corporations

the EXIM policy of Government of India and other apex bodies recognized for this purpose by the Empowered Committee set up for the purpose and Individual Production/ Service Units dedicated to exports. The major criterion for eligibility for the projects is that the proposal must show a direct linkage with the exports from the region and should be desired to help exports from the NorthEastern Region.

Chapter-8

Saudi Arabian Government has imposed testing for MRLs as mandatory for shipments from India. APEDA has issued advisory to this effect on its website for the general information of exporters. Due to repeated detection of exceeding levels of residues of pesticides in Okra and curry leaves consignments from India to the EU, Council Regulation NO 91/2013 dated 31.01.2013 imposing requirement of Health Certificate conforming that all consignments of okra from India to EU comply with the maximum residue levels (MRLs) of agrochemicals, was issued by the European Commission. Directorate of Marketing & Inspection (DMI), vide order No. Q.11013/1/ GA/VG/07-QC dated 05.03.2013 authorized designated officials of the laboratories to issue CAG as well as Health Certificate for export of okra consignments to EU. Accordingly APEDA issued a Trade Notice No: APEDA/ FV/Q/2013 Dated: 07.03.2013 outlining the complete procedure to be adopted for export of Okra to the EU countries. The situation has dramatically improved and there are now no complaints in this regard.

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Continued efforts for getting market access for exports in wet market of Philippines and Iran.

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Handled issues related to export of frozen buffalo meat in the existing markets of Egypt, Jordan, Saudi Arabia, Malaysia, Algeria etc.

•

Successfully handled

o Egypt delegation from 11th June to 4th July 2013 for inspection of abattoir-cum-meat processing plants and got approval for 22 Nos. of plants for export of boneless frozen buffalo meat to Egypt. o And Jordan delegation from 7th to 18th June 2013 for compliance and review audit and got approval for 17 no. of plants for export of boneless frozen buffalo meat to Jordan. Visit of Plant Registration Committee was coordinated by APEDA for inspection of various meat plants for renewal/ registration of abattoir/integrated plants/ meat processing plants for exports.

•

In view of the increased emphasis on human, animal and plant health and safety aspects in the global markets, a number of steps were initiated to improve capabilities for meeting these quality requirements as per the notified standards. HACCP or Food Safety management system was made mandatory for meat processing plants.

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Successfully resolved issues faced by honey exporters in USA.

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Resumed exports of poultry products in Oman, UAE, Kuwait and SAARC countries on the basis of compartmentalization despite bird flu.

Livestock Sector: •

•

212

India exported 1.1 million tones of deboned deglanded buffalo meat amounting to Rs. 17412.89 crores worth of foreign exchange in the year 2012-13 and is likely to export 1.3 million tonnes in the year 2013-14. APEDA has taken efforts for opening up new markets to Russia, Kazakhstan, Belarus, China, Indonesia and increased exports to newly opened markets of Tunisia and Libya.

Annual Report 2013-14

•

A team consisting of representative of Ministry of Agriculture of Georgia, Dr. Mikheil Sokhadze, Chief Veterinary Officer and Dr. Paata Khurdadze from Feed Inspectorate Department carried out on the spot inspection of selected Integrated Abattoirs and Meat Processing Plants in India. Memorandum of Understanding has been signed between APEDA, Ministry of Commerce & Industry, Govt. of India and The General Administration of Quality Supervision, Inspection and Quarantine People’s Republic of China(AQSIQ) signed on 20th May 2013 in order to ensure quality and safety of buffalo meat to be exported from India to China and to initiate export of for export of deboned and deglanded frozen buffalo meat to China. A team of delegation comprising of Joint Secretary, MoC&I, Additional Economic Advisor, MoC&I, Secretary, APEDA, Joint Commissioner DAHD & 14 delegates from meat industry visited China to initiate the implementation of MOU. Restriction imposed on import of frozen buffalo meat from India on account of alleged FMD outbreak reported in the Annual Report 2012 of OIE / FAO FMD reference laboratory network, Pirbright, U.K. APEDA’s intervention had opened up the Tajikistan market.

Annual Report 2013-14

Special steps initiated by APEDA for export of quality buffalo meat products As per DGFT Notification No. 82(RE2010)/2009-2014 dated 31/10/2011 and subsequent DGFT notification No. 89 (RE 2010)/2009-14 dated 15th December 2011 exports from India can be made only on the conditions that the goods have been sourced from APEDA registered integrated abattoirs or APEDA registered meat processing plants that sources raw material exclusively from APEDA registered integrated abattoirs/abattoirs. As of date, forty eight integrated abattoirs/ abattoirs and forty meat processing plants are registered with APEDA for exports. Processed Food Sector: APEDA conducted awareness programmes at various locations for the benefit of stakeholders of Peanut. Experts from the Director General of Groundnut Research (DGR-Junagarh), State Agriculture University, Professional quality assurance agency, representative of the trade elaborated upon the procedures and guidelines for export of peanut and peanut products. Farmers, processors, storage/warehouses, exporters etc., interacted with representatives of University, IOPEPC and Research & Quality experts during the awareness programs. These programs were organized to spread awareness of the latest development about present quality standards to be maintained for exports of peanut products. Following programs have already been organized during 2013-14 :

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Commodity Boards and other Development Authorities, Institutional Trade Facilitation and Public Sector Corporations

•

Table: 8.10 S. No. State 1. Andhra Pradesh 2. Tamil Nadu 3. Karnataka

Place Hyderabad Chennai Chitradurga

The program in the production areas of Rajasthan, Gujarat, Andhra Pradesh & Orissa are scheduled in the remaining period the year.

Chapter-8

Visit of EU-FVO Mission: In order to assess the controls of aflatoxin contamination in peanut intended for export into European union DG(SANCO), 20136683 and for follow up of EU mission by DG(SANCO)/2009-8148, three member team of office of EU-FVO, visited India during 21st October to 1st November, 2013. During the visit they inspected four production units in Gujarat, met with the growers of peanut, met with officials of Pipava Sea port and with Director General of Groundnut Research in Junagarh. In the last phase of their unit they visited two quality testing laboratories to inspect sampling and testing methods to be in line with EU regulation. The visit concluded with a closing meeting in Delhi where all stakeholders, APEDA, IOPEPC, MoA, MoC&I, EIC and NRL (Pune) were present. Draft report of the Mission was discussed by Mission officials with the Indian Govt. officials before the mission was concluded. Further, the Mission has also submitted the report through the office of DG(SANCO) for implementation by authorities in India.

214

Date 5th September, 2013 6th September, 2013 7th September, 2013

Quality Development in Processed Food Sector: APEDA has endeavored for installation of quality management systems in the processed food sector. For the benefit of exporters, financial assistance in the food processing sector for installation of inhouse quality control labs, implementation of internationally accepted quality management system like BRC, ISO 22000 HACCP was continued in 2013-14. Exporters of dehydrated vegetables, processed fruits and vegetables, Groundnuts and other processed food like bakery, confectionery, are the main beneficiaries in the sector during 2013-14. For regular surveillance, APEDA along with IOPEPC conducted unit recognition visits in the groundnut storage/warehouses, processing units. The recognized exporting unit can only export peanut and peanut products after following the guidelines prescribed in APEDA export regulation on peanut dated 27.06.2011. APEDA is monitoring the exports of peanut and peanut products and assures maintenance of quality in the exporting units on continuous basis, in 2013-14.

Annual Report 2013-14

Registration of Basmati Rice as GI APEDA has been entrusted with responsibility by Govt. of India for protection of intellectual property vested in Basmati Rice. The application filed by APEDA with GI Registry in Chennai in November 2008 was published in journal of the Registry in May 2010 for opposition. Response to the nine oppositions received by the Registry was filed by APEDA. The GI Registry has given orders in favour of claim for inclusion of areas under Madhya Pradesh in the GI area. APEDA has been directed to file an amended GI application, including the uncovered area, within 60 days. APEDA has filed an Appeal to stay the order with Intellectual Property Appellate Board, Chennai, on 25/02/2014. Accreditation of BEDF Lab Basmati Export Development Foundation (BEDF), founded by APEDA and registered as a society in 2002 is mandated to undertake activities for integration amongst diverse stakeholders such as farmers, millers, traders & exporters for strengthening the supply chain with improvement in quality of the product. For quality assurance and authentication of Basmati Rice, a world-class laboratory has been set up in the premises of SVBP University of Agriculture & Technology at Modipuram, Meerut (UP) with facilities for DNA profiling, pesticides residue testing and quality testing on the basis of physical parameters. This lab was notified by DGFT w.e.f. March 31, 2010, as an authorized centre for testing of Basmati Rice samples drawn by Customs for variety

Annual Report 2013-14

identification & DNA testing. About 3000 samples received from Customs and DRI have been tested by the Lab till date. In June 2011 the Lab has obtained ‘Certificate of Accreditation’ from National Accreditation Board for Testing & Calibration Laboratories (NABL) under ISO/IEC 17025:2005. BDF also supports DNA Testing by Centre for DNA Fingerprinting & Diagnostic (CDFD), Nampally, Hyderabad (AP) samples received from EIA/ Customs. During 2013-14 total number of 160 samples have been tested; 148 for DNA analysis and 12 for quality testing based on physical parameters. During the year 2013- 2014, 18894 no. of RCACs were issued for export of 38.40 lakh MTs of Basmati Rice. Workshops Organized By BEDF for the Farmers of Basmati Growing States During this year, Basmati Export Development Foundation had organized 15 workshops on “Quality Improvement in production of Basmati Rice for Export” through its Demonstration & Training Farm in basmati growing states, viz., Haryana, Jammu & Kashmir, Punjab, Uttar Pradesh, Himachal Pradesh &Uttarakhand to educate the farmers regarding production of best quality Basmati Rice for export purpose. Workshops organized on Aromatic Short Grain Rice APEDA had organized in association of Kerala Agriculture University a ‘One Day Workshop’ on Jeerakasala and Gandakasala grown in Wayanad District in Kerala on 21st June 2013. All the stakeholders in the supply chain were invited. Shri A.K. Gupta, Director, BEDF has

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Commodity Boards and other Development Authorities, Institutional Trade Facilitation and Public Sector Corporations

CEREALS SECTOR:

given the key note address. Shri K P. Mohanan, Hon’ble Minister of Agriculture attended the plenary session.

•

Regulating the production and curing the Virginia tobacco to match demand in India and abroad.

•

Basmati Rice wet sampling was done at the following trade fairs:

Propagating information useful to the growers, dealers and exporters (including packers) of Virginia tobacco and manufacturers of Virginia tobacco products.

•

a) ANUGA 2013, Cologne, Germany from 5th to 9th October, 2013.

Promoting the grading of tobacco at the level of the growers.

•

Establishment of auction platforms for the sale of Virginia tobacco and function as auctioneer.

•

Maintenance and improvement of existing markets and development of new markets outside India.

•

Keeping a constant watch on the Virginia tobacco market, both in India and abroad and ensuring fair and remunerative price for the same.

•

Purchasing Virginia tobacco from the growers when the same is considered necessary or expedient for protecting the interest of growers with the approval of the Government of India.

Focus on promotion of Basmati Rice in the International Trade Fairs A special focus is given on promotion of Basmati Rice in most of the International Trade Fairs where APEDA participates with All India Rice Exporters Association (AIREA).

Chapter-8

The important functions of the Tobacco Board are:

b) Food & Hotel, Shanghai, China from 13th to 15th November, 2013. AGRI EXPORT ZONES: The 60 AEZs notified between 2001 and 2004 by the Steering Committee envisaged an investment of Rs.1717.95 crores and export of Rs.11821.47 crores over a period of 5 years. Against these projections, these AEZs are reported to have crystallized a total cumulative investment of Rs.1490.65 Crores and cumulative export of Rs. 38363.00 Crores up to February 2013. Note: The data of actual exports & investment received from state nodal agencies implementing the AEZS have been compiled cumulatively. TOBACCO BOARD Tobacco Board was established on 01/01/1976 under the provisions of the Tobacco Board Act, 1975 with its Head Quarters at Guntur, Andhra Pradesh.

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PRODUCTION FCV Tobacco Production Regulation: One of the important functions of the Tobacco Board is to regulate the production of Virginia Tobacco to match the demand for Indian tobacco so as to ensure fair and remunerative prices to the growers for their produce. This objective is sought to be achieved by fixing

Annual Report 2013-14

the area under FCV tobacco is 0.98 lakh hectares in Karnataka and about 0.95 lakh hectares is planted under tobacco as on 22.11.2013 in the states of Andhra Pradesh and Odisha. The plantations in Andhra Pradesh are still in progress. 41385 growers in Karnataka and 45230 in Andhra Pradesh are engaged in FCV tobacco cultivation.

FCV Crop Production Policy:

FCV tobacco production in India is declining for the last three years from a peak of 323.25 M.kgs., in 2009-10. FCV production in 2013-14 is estimated at 280 M.kgs., up by about 3% over last yearâ&#x20AC;&#x2122;s production of 270.50 M.kgs. The production of FCV tobacco in Karnataka is estimated at 110 M.kgs., and that of Andhra Pradesh at 194 M.kgs.

Tobacco Board has fixed a crop size of 102 M.kgs., in Karnataka for 2013-14 crop season. For the State of Andhra Pradesh and Odisha, the Board has fixed a crop size of 172 M.kgs. Production- FCV Tobacco FCV tobacco is cultivated in more than 2.00 lakh hectares every year. In 2013-14,

Chart 8.5 FCV Tobacco Production in India

(millionkgs) 350.00 300.00 250.00 200.00 150.00 100.00 50.00 0.00 4 5 6 7 8 9 0 1 2 3 (*) -0 -0 -0 -0 -0 -0 -1 -1 -1 -1 14 03 004 005 06 007 008 009 010 011 12 0 0 0 2 2 2 2 2 2 2 2 2 2 13 20

Karnataka

Andhra Pradesh

Total

(*)- Estimated

Annual Report 2013-14

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crop size and by registering commercial nurserymen, tobacco growers and barn operators every year. The Board decides the crop size of FCV Tobacco, considering various factors like demand and supply situations in domestic and international markets, marketability of different types of FCV tobacco, carryover stocks, trends in cigarette production and consumption.

Other Services to growers

Chapter-8

Tobacco Board every year undertakes analysis of soil and water samples collected from grower’s fields at free of cost to advise growers on suitability of soil and irrigation water used for tobacco cultivation and quantity of fertilizers to be used for tobacco cultivation. During 2013-2014 crop season, 2060 soil samples and 610 water samples in Andhra Pradesh are analysed at Tobacco Board’s Soil Testing Laboratory at Ongole and based on the analysis results, growers are advised about suitability of soil and dosage of fertilizers to be used. Similarly in Karnataka, about 5500 soil samples are analysed and growers are suitably advised. EXTENSION: The Tobacco Board provides a comprehensive package of support and extension services to farmers through: •

Supply of cognitive inputs including fertilizers.

•

Organizing crop and input loans to growers at competitive rates of interest.

•

Improving Yield & Quality of tobacco through implementing several extension and developmental programs.

•

Transfer of technology for improving productivity and quality of the tobacco leaf.

•

Extending financial assistance to farmers wherever required.

Tray Nurseries – Quality Seedlings: The seedlings raised in the ‘HIPS’ Trays using coco-peat as the media are of healthy and

218

better quality seedlings than the seedlings raised by the growers in the traditional seedbeds in the field. The tray seedlings are free from soil born diseases, pests and also result in savings to the farmers in the area of pesticides, fungicides and labour cost for watering the seedlings. The Tray seedlings establish immediately with minimal gap fills and produces uniform crops. The Board with a view to propagate this new technology has organized supply of 23.45 lakh trays and 42.79 kgs of coco-peat to growers at subsidized cost in Andhra Pradesh and Karnataka states. Fertilizers: The Board organises timely supplies of various fertilizers required by growers in Andhra Pradesh and Karnataka at competitive prices. For 2013-14 crop season, the Board had supplied about 34,646 M.tons of fertilizers in Andhra Pradesh and 31,545 M.tons in Karnataka. Due to hectic green manure campaign taken up by the Board, many small and original farmers have resorted to green manuring in an area of around 9,200 hectare. Farm Mechanisation: Bullock Drawn Ridgers / Tyne Cultivators / Ridgers: In order to improvise the farm operations and ridge formations in the tobacco fields, the Board had organized supply of 105 Bullock Drawn Ridgers and 558 Tyne Cultivators to growers in Karnataka at subsidized cost OF Rs. 8.59 lakh.

Annual Report 2013-14

PVC pipes:

Product Integrity

The Board with a view to help the growers in the drought prone area of Andhra Pradesh to go for a life saving irrigation using available waters in the wells / ponds had supplied about 17522 no. of PVC pipes at subsidized cost of Rs.39.01 lakh

Nowadays customers are insisting clean product free from admixture of Non-Tobacco Related Materials (NTRMs). Therefore, the Board to help growers supply clean product to the growers is organizing supply of tarpaulins to the growers for use at the time of leaf stringing, grading, bulking and transporting the tobacco bales to the Auction Platforms, supplied Silpaulin tarpaulins of 6540 Nos at subsidized cost of Rs.52.65 lakh during 201314 crop season covering 6135 growers.

Power Sprayers The Board with a view to help grower to take up timely plant protection measures had indented for about supply of 375 Power sprayers in Andhra Pradesh at subsidized cost and the same is under progress. This apart the Board is contemplating to supply 25 units of Back pack sprayers through NIPHM on experimental basis. Curing of Tobacco - Energy Conservation The Board encourages growers upgrade the furnace in the curing barn by supplying Venturi Furnaces at subsidized cost â&#x20AC;&#x201C; in about 270 barns.

Annual Report 2013-14

Input Loans The Board organizes input loans to growers in Andhra Pradesh and Karnataka states for procurement of various inputs viz., fertilizers, fungicides, trays, coco-peat, sprayers, tarpaulins, etc., at most competitive rates of interest. The Board had organized input loans of about Rs. 88.76 crore in Karnataka at 4% rate of interest p.a and Rs.82.86 crore for Andhra Pradesh at 0% for 2013-14 crop season.

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Farmers resort to green manure with the increase in fertilizer cost

Tobacco Growers Welfare Fund:

Chapter-8

“Tobacco Board’s Growers’ welfare schemes” is an initiative aimed at welfare of the registered tobacco growers and their dependent family members. Under this scheme, Tobacco Board has created a “Tobacco Board’s Growers Welfare Fund” in 2009-10 as approved by Ministry of Commerce and Industry, Government of India vide its letter dated 6/5/2007-EP (AgriVI) dated 30/11/2009. The welfare scheme provides for financial assistance in the form of grants/loans to meet the educational, social and health needs of the growers and their family members in addition to assistance in times of natural calamities. The Welfare Fund was established with corpus of Rs.25 crore with contribution in the ratio of 1:2 by the tobacco growers (Rs.1000/each) and the Tobacco Board (Rs.2000/- for each grower) to implement various welfare schemes. Tobacco Board had contributed Rs.17.536 crore towards this fund. The schemes in operation are: •

Providing financial relief in the form of grant to the dependent family in the

event of death of the grower member of the scheme (Rs. 25000/- for natural death and Rs.50000/- for accidental death). •

Providing financial relief in the form of interest free loan for treatment for major illnesses requiring surgery for the grower member and/or his family members (Rs.25000/- interest free loan).

•

Providing financial relief in the form of interest bearing loans @4% interest for education to the dependent children of the grower member (Rs.25000/- @ 4% interest loan).

•

Providing financial assistance in advance in the form of interest free loan for the marriages of daughters of the grower member (Rs.25000/- interest free loan).

•

Providing financial relief in the form of interest free loan for repairing the barns damaged due to natural calamities (Rs.25000/- per barn in the event of full damage and Rs.10000/- per barn in the event of partial damage).

During 2013-14, Rs.2.72 crore were disbursed in grants and Rs.0.34 crore in loans, totaling to Rs.3.06 crore. The details of relief/assistance extended scheme wise are as follows:

Table: 8.11 Category

Particulars

Grants

a) Natural death b) Accidental death

Total Grants (A)

Interest Free a) Loans for Girl child marriage Loans

220

No. of beneficiaries

Amount

1033

2,58,25,000

14,00,000

1061

2,72,25,000

100

25,00,000

Annual Report 2013-14

Loans with interest

Particulars

No. of beneficiaries

b) Loans for medical treatment of Major illness requiring surgery

2,25,000

c) Loans for repairing of barns damaged due to natural calamities

6,50,000

135

33,75,000

1196

3,06,00,000

d) Loans for Education of Children with 4% interest

Total Loans (B)

TOTAL (A+B)

AUCTIONS:

& 31/03/2014 (The auction sales were commenced from 17/02/2014). It is estimated that the total estimated production is 191.38 mkg at the beginning of the season as against the target crop size of 172 mkg fixed by the Board.

The auction system for sale of FCV tobacco was introduced for the 1st time in Karnataka in 1984 followed by Andhra Pradesh in 1985.

e-Auction in progress

Progress made during 2013-14:•

•

Amount

In Andhra Pradesh a total quantity of 165.09 m kg of tobacco was marketed at an average price of Rs. 113.30 per Kg between 1/04/2013 to 31/08/2013 (last auction sales day). For 2013-14 Andhra Pradesh crop season, a total quantity of 20.07 Mkg of tobacco was marketed at an average price of Rs.121.64 per Kg between 17/02/2014

Annual Report 2013-14

•

For Karnataka 2012-13 crop season, a total quantity of 5.57 mkg of tobacco was marketed at an average price of Rs.79.54 per kg and the Karnataka auctions were concluded on 10/04/2013.

•

In Karnataka 2013-14 crop season, a total quantity of 102.02 mkg of tobacco was marketed at an average price of Rs.129.18 per kg and the Karnataka auctions were commenced on 30/08/2013 and concluded on 19/03/2014.

Price support operations: Govt. of India notified the Minimum Support Price (MSP) for F2 grade of black soil tobacco and L2 grade of Light soil tobacco on the recommendation of the Commission of Agricultural costs and prices (CACP) up to 2008 crop season. Based on which the Minimum Support Prices for other grades are worked out by the Tobacco Board. Since, the year

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Category

2009, the Govt. of India has not announced the Minimum Support Price for FCV tobacco crop. Export Performance: The exports of tobacco and tobacco products during 2013-14 were 2,64,384 tons valued at Rs. 6,059.31 crore (1,001.54 Million US $) against 2,63,575 tons valued at Rs. 4,979.05 crore (914.43 Million US $) exported in 2012-13. During 2013-14, the unmanufactured Tobacco exports were in the order of

2,34,850 tons valued at Rs. 4,842.01 crore and exports of Tobacco Products were in the order of 29,534 tons valued at Rs. 1,217.30 crore. The unmanufactured tobacco exports had increased by about 3% in quantity terms and 26% in value terms, while the exports of tobacco products declined by 17% in quantity terms and increased by 6% in value terms during this period. Overall, exports of Tobacco and Tobacco Products increased by 0.3% in quantity terms, 22% in Rupee terms and 10% in Dollar terms over the corresponding period of last year.

Chapter-8

Table: 8.12 Export performance of Tobacco & Tobacco Products (2013-14) Quantity

MT Manufactured Unmanufactured Total

35552 228023 263575

2012-13 2013-14 Growth (%) Quantity Quantity Value Value Value Rs. US$ MT Rs. US$ MT Rs. US$ Crore Million Crore Million Crore Million 1147.21 210.69 29534 1217.30 201.21 -16.93 6.11 -4.50 3831.84 703.74 234850 4842.01 800.33 2.99 26.36 13.73 4979.05 914.43 264384 6059.31 1001.54 0.31 21.70 9.53

Export Promotion Activities: As a part of export promotion activities, Executive Director, Tobacco Board had participated in Global Tobacco Networking Forum, Cape Town, South Africa during 4-8 November 2013. With a view to promote the exports of tobacco and tobacco products, the Board had participated in international exhibitions at the following places to show case the Indian unmanufactured tobacco and tobacco products. 1) The India Show, Dares Salaam, Tanzania during 25 -27 September 2013

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2) Global Tobacco Networking Forum (GTNF) Cape Town, South Africa during 4-8 November, 2013. 3) World Tobacco Europe 2013, Hamburg, Germany during 12-14 November 2013 Modified Scheme:

Personal

Accident

Insurance

Modified Personal Accident Insurance Scheme was introduced in 2005 and modified in December, 2008, by the Price Stabilization Fund Trust established under the Ministry of Commerce & Industry. The Scheme will cover the growers in the sectors of Tea, Coffee, Rubber and Tobacco

Annual Report 2013-14

The vendor agency for 2011-12, 2012-13 & 2013-14 is M/s. Cholamandam M.S. General Insurance Company Limited. The premium for the policy to be issued for every individual would be Rs.22.06 per annum (including Service Tax) for the year 2011-12, 2012-13 & 2013-14 and this would be subsidized by PSF Trust @ 50% of the premium. The share of premium payable by the individual growers and their beneficiaries is Rs.11/- per annum. The insurance cover will be up to Rs.1.00 lakh per person. The Personal Accident Insurance Scheme is a standalone scheme and is not linked to the main PSF Scheme. Government of India have extended the implementation of Personal Accident Insurance Scheme during the year 2013-14 for a period of six months i.e. from April, 2013 to September,2013. During the year 2013-14 (April,2013 to September,2013), 3082 tobacco growers and 1671 workers, total comes to 4753 persons in Andhra Pradesh and Karnataka were joined under the Scheme. During 2013-14 Rs.2.00 lakh was released towards compensation under the said scheme in respect of two death cases of tobacco growers.

Annual Report 2013-14

The Marine Products Export Development Authority (MPEDA) The Marine Products Export Development Authority, a statutory body under the Department of Commerce, Ministry of Commerce & Industry is mandated for the development of export of marine products from India. Export Performance The Export of Marine Products during the financial year 2013-14 reached an alltime high of US $ 5007.70 million. Marine product exports, crossed all previous records in quantity, rupee value and US $ terms. Exports aggregated to 9, 83,756 MT valued at Rs. 30,213.26 crores and US $ 5,007.70 million. Compared to the previous year, seafood exports recorded a growth of 5.98 % in quantity, 60.23% in rupee and 42.6 % growth in US $ earnings respectively. The unit value realization also reached to record high from USD/Kg 3.78 during 2012-13 to USD/Kg 5.09 during 2013-14 and recorded growth of 34.55%. The increased production of L. Vannamei shrimp, has helped to achieve higher exports. Table 8.13 Exports during 2013-14 compared to 2012-13 Export details

2012-13

2013-14

Growth % 983756 5.98

Quantity 928215 Tonnes Value Rs. crore 18856.26 30213.26 Value US $ 3511.67 5007.70 Million Unit value 3.78 5.09 (US$/Kg)

60.23 42.60 34.55

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having plantations up to 4 hectares only. The scheme will also cover the permanent plantation workers working on these plantations. Growers who have enrolled themselves under the PSF scheme earlier donâ&#x20AC;&#x2122;t have to pay membership fee. The growers of tobacco have to pay Rs.100/- for availing the benefit of the Personal Accident Insurance Scheme, as they did not join the main PSF Scheme. For tobacco, the family members of the growers working in cultivation are also considered for insurance.

Major Export Markets South East Asia continued to be the largest Market Indian sea food with a share of 26.38% in terms of US $ value realization followed by USA, with a share of 25.68% followed by European Union (EU) (20.24%), Japan (8.21%), other countries (8.20%), China (5.85%) and Middle East (5.45%).

Chapter-8

Major items of export Frozen shrimp continued to be the major export value item accounting for a share of 64.12% of the total US $ earnings. Shrimp exports during the period increased by 31.85%, 99.54% and 78.06% in quantity, rupee value and US $ value respectively. There was all time high growth in unit value realization of frozen shrimp at 35.05%. Thrust Areas To facilitate enhanced export of marine products from the country MPEDA has been giving greater thrust in the following areas: •

Diversifying the culture practices in to commercially important Shell fishes and Fin fishes to enhance aquaculture production and increase the varieties.

•

Establishing traceability of Aqua Culture and Capture Fishery products through primary producers enrolment.

•

Establish traceability of aquaculture and capture fishery products through primary producers enrolment.

•

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Promoting Ornamental Fish Breeding for export by providing infrastructure to produce varieties of Ornamental Fish species and also for employment generation in rural and semi urban areas.

•

Upgrading of fishing harbours to international standards for sustaining / expanding our international markets.

•

Extending financial assistance for conversion / construction of Tuna Long Liners and imparting training to crew to develop Tuna industry to boost the export of Tuna

•

Implementing Catch Certification scheme for preventing / discouraging Illegal, Unreported and Unregulated (IUU) fishing.

•

Operating a scheme of Sea-freight assistance for the promotion of export of value added marine products by the registered seafood manufacturer exporters.

•

Introduced a quality for Mark Scheme promotion of value added consumer products in major markets.

•

Ensuring production of quality seafood by setting up sophisticated laboratories in the maritime States.

•

Operating a nation wide network of ELISA labs to ensure Anti Biotic free residue aquaculture exports.

•

Establishing presence of Indian Seafoods in major International markets by cobranding, publicity in different media and Indian products with major buyers abroad.

•

Registration Certificates and RCMC Certificates are issued on-line through MPEDA Regional Offices. Financial Accounting, Payroll, Pension, Personnel, GPF, Stores and Inventory, Asset Management etc are computerized. Subsidy Application processing & Subsidy

Annual Report 2013-14

secure condition and can be supplied to the sector as and when required. •

Encouraging formation of Aqua Farmers Welfare Societies of small farmers for adoption of Code of Practices for sustainable shrimp culture by extending financial assistance for setting up common facilities.

•

To popularize the technology on Crab farming, field demonstrations continued in coastal States for which the cost for inputs like seed, feed and Crab fencing is being extended by MPEDA.

•

To popularise the technology for all male gift Tilapia culture & Cobia culture field level demonstration and technology transfer is being carried out.

•

Demonstration of disease free Tiger Shrimp production using high health shrimp seeds were conducted in the States of Maharashtra and Odissa.

•

To facilitate quality supply of the inputs like seed and feed to the aqua farmers, MPEDA is involved in the monitoring of hatcheries on quarterly basis and collecting the feed samples from production units for quality analysis.

•

India Organic Aquaculture Project (IOAP) assists in the development of Certified Organic Shrimp / Scampi seed, Certified Organic aqua feed, Organic Certification of aquaculture farms and Organic Certification of Processing Plants to boost the export of Organic aqua products from India. MPEDA is continuing the initiative to promote the production and export of Organic Seafood from the country.

Steps taken to increase production and exports •

Assistance for Fishing Vessel owners for the installation of Insulated Fish Hold / Refrigerated Seawater System / Ice making machinery for onboard fishing vessel for better preservation of catch and earning of more value for the catch.

•

Extended technical and financial assistance for the development of new area under Shrimp and Scampi culture in all the maritime States of the country for sustainable production of seafood.

•

With the introduction of Pacific White Shrimp into India, a significant increase has been noticed in the aquaculture production from the maritime States of the country. The shrimp and Scampi production in 2013 -14 up to March 2014 was estimated to be about 3,35,000 MT including Scampi production of 3,545 MT. 75% of aqua cultured shrimp was L. Vannamei and 23% was Black Tiger. The Aquatic Quarantine facility established by RGCA / MPEDA at Chennai screens all the imported SPF L. vannamei brood stock for OIE listed pathogen to ensure the production of quality SPF L. vannamei Shrimp seeds for farming. Steps have been initiated to setup the broodstock multiplication centre at MPEDA facility at TASPARC, Visakhapatnam by RGCA so that required number of broodstock for the sector could be produced in a bio-

Annual Report 2013-14

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disbursement, PHT, NRCP Lab testing are also computerized and e-procurement system has been introduced.

Chapter-8

•

MPEDA assists the processors to construct/renovate captive/independent pre-processing centers as per EU/ GoI guidelines and setting-up of Mini Laboratory in processing plants.

•

FVO Mission of European Commission comprising of two teams visited India during 3rd to 14th March, 2014 to evaluate the control systems in place. They also visited MPEDA Head Office on 10th March, 2014. MPEDA Representatives accompanied the teams throughout their visits in addition to inspections at seafood processing centers, harbors, farms, labs etc. USFDA commissioner had a special meeting with Chairman, MPEDA during her visit to Kochi.

•

226

Provided technical assistance to the seafood industry in HACCP implementation by imparting training to the technical personnel of the industry. MPEDA also hosted 7th meeting of ISO TC/234 in association with SEAI. For effective implementation of MPEDA LOGO scheme, two training programmes on product inspection was organized at Kochi and Mumbai from 25th to 26th April, 2013 and 8th and 9th May, 2013 respectively. With continued effort by MPEDA and MoCI on the Ethoxyquin issue, the Japanese Ministry of Health, Labour & Welfare has fixed Maximum Residue Limit (MRL) of 0.2 ppm against the earlier default limit of 0.01ppm in crustaceans including farmed shrimps. MPEDA has set up 4 more ELISA Screening Laboratories one each in West Bengal,

Odisha, Andhra Pradesh and Tamil Nadu, making total number of ELISA labs as 20 with automatic ELISA testing equipment to screen for the presence of antibiotic residues like Nitro furan metabolites and Chloramphenicol in cultured shrimp under the Pre-Harvest Testing (PHT) program. Under the PHT programme, during January to December 2013 a total of 46,400 samples were tested by ELISA labs. •

The monitoring of Cadmium content in Cephalopods (Squid, Cuttlefish & Octopus) is done / studied in samples caught in all the regions on East & West Coasts of India. Analysed 101 samples till December 2013.

•

The Quality Control lab at Kochi is also undertaking a project for Monitoring of Pesticide Residues at National Level (MPRNL) funded by Department of Agriculture (MoA). During the year 2013-14, 550 samples of inland fishes and crustaceans, marine crustaceans from the maritime states of India were analysed and the results were communicated.

•

To increase the processing capacity of value added products, MPEDA is operating various subsidy schemes for the benefit of existing exporters and also to the new entrepreneurs for creation of required infrastructure facilities..

•

Extended financial assistance for cold chain development by: 1. Subsidised distribution of Insulated Fish Boxes, 2. Acquisition of Refrigerated Trucks/ Containers, 3. Financial Assistance for the construction of new large Cold

Annual Report 2013-14

•

MPEDA participated in 8 major international seafood fairs around the world and displayed a wide range of Indian marine products especially value added products to generate awareness and demand.

•

MPEDA organised the 19th edition of Indian International Seafood Show (IISS) at Chennai from 10th to 12th January 2014. About 2500 delegates participated in the Seafood Show along with 255 exhibitors occupying 355 stalls. About 450 foreign delegates also participated in the show.

•

As a part of promotional measures in seafood and marine products production sector, MPEDA is organising 3rd edition of AQUA AQUARIA INDIA 2015, an International show focusing the aqua culture and Ornamental Fish sector in February 2015 at Vijayawada. A total of about 20,000 Indian and overseas delegates are expected to attend the show and a total 300 exhibitors including those from USA, UK, Thailand, Singapore, Malaysia, China etc. are participating in it.

•

Rajiv Gandhi Centre for Aquaculture (RGCA) continued Research and Development activities for developing new aquaculture technologies by innovative methods, by implementing several species specific R & D projects for increasing production of commercially important Finfish, Shellfish, export oriented ones in particular, to strengthen

Annual Report 2013-14

•

NETFISH, a Society promoted by MPEDA for undertaking extension education programmes, continue their efforts in Capture Fisheries sector, Fish Quality Management, Conservation and sustainable fishing and for capacity building in all the maritime States of India. The extension tools developed by NETFISH such as posters, leaflets, documentaries and animation films were made use of for delivering the messages effectively during the programmes and also conducts special awareness programmes such as Street Plays, Medical Camps, Rallies, Clean-ups, School programmes, Mass Communications, Radio Programmes, etc.

•

NaCSA, a Society promoted by MPEDA for undertaking extension education programmes continue their efforts in culture fisheries sector, for quality up gradation and for capacity building of small scale shrimp farmers, NaCSA educates farmers in Better Management Practices, Crop Planning, etc and continue to support sustainable aquaculture by creating participatory movement through capacity building at grass root level.

•

The Nucleus Breeding Centre of the Domestication of Tiger Shrimp Project (DTSP) of RGCA/MPEDA at Andaman was dedicated to the Nation on Friday, the 28th February 2014 by Shri. Anand Sharma, the then Union Minister of Commerce & Industry, Govt. of India.

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the aquaculture production base in the country.

Storages, 4. Setting up of New Ice Plants/ Renovation of Existing Ice Plants.

On the same day, the then Union Minister also laid the Foundation stone for the Multi-species Grouper Hatchery at Rangachang, Andaman and the Broodstock Multiplication Centre for Tiger Shrimp at Kanyakumari Dt., Tamil Nadu via satellite link UNDP Mangrove Project - During the year, around 3.86 lakhs Crab instars were stocked in 625 Nursery Hapas in 29 batches at the Demonstration farm. These were reared to Crablets and around 1.51 lakhs Crablets were produced at survival rates ranging between 34% and 52% from batch to batch. While 61,000 crablets were supplied to 20 farmers across the country, around 11500 nos were supplied for three MPEDA Demonstration and around 23,000 were supplied to the UNDP Mangrove project in Maharashtra. Around 6200 nos. were supplied to govt. institutions for their demonstrations.

•

Launch of the Online Quarantine Monitoring System at the AQF - The development of the Online Quarantine Monitoring system with an online space reservation portal at the Aquatic Quarantine facility was completed and the system hosted at the website of RGCA at www.rgca.org.in. Online space reservation through a dedicated payment gateway commenced on the 15th April 2013 and the system has completed one complete year without any major glitches. This system has become extremely popular among the users owing to the transparency on space availability and simplicity in the booking process.

Chapter-8

•

228

Trade Facilitation Institutions

Indian Institute Of Foreign Trade (IIFT)

The Indian Institute of Foreign Trade (IIFT) was established in 1963 by the Government of India with the objective to strengthen the country’s external trade sector through development of human resources and by generating, analyzing and disseminating data for conducting research and providing consultancy services in trade promotion. Since then, the Institute has been playing a pioneer role in imparting training in foreign trade management in the country besides undertaking research and consultancy in various areas of International Business. Recognising its achievements, the Institute was awarded the status of Deemed University in May 2002 by University Grants Commission (UGC) and accredited in May 2005 as “A” grade institution by National Assessment and Accreditation Council (NAAC). To commensurate its achievement and contribution towards development of knowledge and growth of international trade, IIFT celebrated its Golden Jubilee on 2nd May 2013. Shri Pranab Mukherjee, President of India, graced the ceremony as Chief Guest. Hon’ble President of India unveiled the Sculpture “Wings of Wisdom” at IIFT premises, and addressed the faculty, staff and students of IIFT. As part of the Golden Jubilee Celebrations, Hon’ble Prime Minister released a commemorative postal stamp in glittering ceremony on 21st December 2013. This was a significant recognition by the Government of India for the enormous contribution of IIFT in nation building over the last 50 years.

Annual Report 2013-14

The major activities carried out by the Institute during 2013-14 (April 2013-March 2014) by different Divisions/Sections of the Institute are given below: Education The Institute conducts different educational programs which include Ph.D, MBA(IB) Degree Full Time and Part Time, 05 Executive Diploma Programmes and 02 Certificate Programmes. International Collaboration and Capacity Development (ICCD) The International Collaborations & Capacity Development (ICCD) Division of IIFT plays an important role in the Institute through the following activities: International Collaborations IIFT has established academic ties with domestic and international Universities / Institutes to enable activities such as joint training and research programmes and student / faculty exchange. At present, IIFT

Annual Report 2013-14

has collaborations with 27 Universities / Institutes across the world. Of these, 16 are in Europe, 6 are in Asia and 5 are in other parts of the world. Student Exchange Programme 29 students came to IIFT for different duration during July 2013- March from different Universities and Institutions like ESC Rennes School of Business, Grenoble Graduate School of Business, EM-Strasbourg University, University of Insubria, UAM, IESEG, SKEMA etc. under Student Exchange Programme. One student spent one entire academicyear from July 2013-March 2014. 10 students each from Delhi and Kolkata Campus of IIFT visited various Universities like EM – Strasbourg University, France, Grenoble Graduate School of Business, France IÉSEG School of Management, Saarland University, Germany, SKEMA Business School, France and ESC Rennes School of Business from January 2014 to March 2014. Capacity Development Capacity development initiative of IIFT is aimed at providing academic exposure to IIFT Faculty. In the period April 2013 to March 2014, the Institute provided financial support to attend training/conferences/seminars/programmes to 10 faculty members in India and 7 Faculty members to attend International Training Programmes on Practical General Equilibrium Modelling with GAMS at Singapore. Delegations from Abroad •

The Confederation of Indian Industry (CII) and Ministry of External Affairs (MEA) jointly organized a Student Delegation of 125 participants from ASEAN countries.

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Commodity Boards and other Development Authorities, Institutional Trade Facilitation and Public Sector Corporations

The Institute has emerged as a major Centre of International Business by aligning its teaching, research and training capabilities with its core vision over the years and by constantly striving to create academic excellence through its five academic divisions, namely, Graduate Studies Division (GSD), Research Division (RD), Management Development Programmes (MDPs) Division, International Collaboration and Capacity Development (ICCD) Division and International Project Division (IPD). Each Division caters to competency development in a specific area and contributes to the overall growth of the Institute.

The delegation visited IIFT on September 28, 2013. The participants had an Interactive Session with IIFT Faculty on “Globalization and FTAs with ASEAN Region”. •

•

Chapter-8

•

A delegation of high level Oman Government officials visited IIFT on 21st October, 2013 to discuss about Oman’s interest in developing its education sector and leveraging research which can be used for business development. A delegation of 8 Indonesian officials visited IIFT on 26th December, 2013 to discuss on Trade in Services, International Cooperation and Food Security. A delegation of Professors and students from Florida International University (FIU) visited IIFT to attend the programme on “Professional Development in International Business India 2014 Program” (3rd January 2014).

International Project Division Capacity Building Programmes On International Business In African Countries The Institute has successfully conducted Twenty Three Executive Development Programmes on International Business in various African Countries viz Ethiopia, Egypt, Botswana, Namibia, Angola, South Africa, Uganda, Senegal, Rwanda, Burkina Faso, Sudan, Mauritius, Seychelles, Togo, Tunisia Ghana, Niger, Eritrea, Kenya, Gabon, Tanzania, Madagascar and Djibouti.

African Union (AU) with IIFT as the implementing agency on behalf of the Government of India. •

The MOU was sent to the Government of Uganda by MEA on 13th October 2011. IIFT still awaits the concurrence for the same from Ugandan side for implementation of the project.

•

The plan is to begin with Certificate Programmes in Export-Import Management and then gradually slip into long-term MBA Programmes in International Business and International Trade Logistics & Operations.

•

In addition, MDPs and research activities have also been planned for. The budget now standing at Rs. 60 crore has been submitted to the Ministry of External Affairs, Government of India.

Long –Term training programme in Tanzania in collaboration with Institute of Finance Management (IFM), Dar-es-Salam, Tanzania •

Inauguration of MBA(IB) 2013-15 was held on 18 November 2013.

•

IIFT has submitted a proposal to IFM for setting up an IIFT-IFM Institute of Foreign Trade in Tanzania.

•

Convocation of MBA (IB) 2011-13 was held on 28 February 2014 at IFM, Tanzania. Director-IIFT presided over the function. 43 students were awarded the degree.

•

IFM has released the advertisement for new batch of MBA(IB) 2014-16 which will commence from October 2014.

Setting Up Of India-Africa Institute of Foreign Trade (IAIFT)

Research Project

•

230

Uganda was identified as the host country for setting up of IAIFT by the

IPD took up the research project on India-ECOWAS Trade and Economic

Annual Report 2013-14

•

Final report of the project was submitted to Department of Commerce in December 2013.

Proposal for India Africa Forum Summit (IAFS) – 2014 •

A proposal under India Africa Forum Summit scheduled to be held in September / October 2014 has been submitted to Department of Commerce and Ministry of External Affairs, Govt. of India.

e-Resources In order to facilitate online access to information, Library has also subscribed to trade related 30 online and offline databases. Publications Foreign Trade Review Foreign Trade Review (FTR) is a premiere journal on International Economics published by IIFT. It’s a quarterly well recognized in India and abroad in the field of international trade. Since 1966, 48 Volumes have been published with 4 issues per volume. Currently the journal is published by M/s Sage Publications, India.

Annual Report 2013-14

In its more than four and half decades of existence, it has remained a platform for dissemination of in-depth analysis focusing on India’s integration with world economy and global trade. It publishes papers from various experts, academicians, researchers, policy makers and trade and industry having a track record of proven expertise on these critical issues. Focus WTO Focus WTO published by IIFT is devoted to WTO and related issues. Since 1999, the Institute has been publishing this journal. Each issue is thematic. With the establishment of WTO, the entire dynamics and gamut of international trade have undergone a fundamental change. Analysis and information on WTO issues have become important while conducting international trade for many countries. The journal caters to the requirements of various government departments, academicians, policy makers and trade and industry. Focus WTO which was a bimonthly journal is now being brought out as a quarterly journal from January 2014. IIFT Campus at Kolkata The construction activities in Academic Block, Administrative Block and Hostel Block are in full progress where RCC framework and brick work have been completed and finishing works are in progress. Supplementary activities likefire-fighting work, lift, HVAC, DG sets, network & EPBAX and cabling etc. are also going on simultaneously. It is expected that Kolkata campus of the Institute will start functioning from its own campus in the next academic year.

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Cooperation. The project of Rs 10.32 lakh to ascertain the potential of bilateral trade and economic cooperation between India and Economic Community of West African States (ECOWAS) - a regional group comprising 15 West African countries, was sponsored by the Department of Commerce, Government of India and completed by two professors of the Institute.

Centres of IIFT

Chapter-8

Centre for International Trade in Technology (CITT) The Centre for International Trade in Technology (CITT) has continued its activities in 2013-14 related to policy research in technology and innovation space. The Centre has been putting efforts to carry out focused research in innovation and innovation led growth. A comprehensive research project "Emerging and Contemporary R&D and Innovation Indicators in National S&T System and Policy Implications-A Comprehensive Study" sponsored by Department of Science & Technology (DST) is under way and in final stages of procurement. Also, other potential partners and sponsors are being pursued for other identified investigation areas. Centre for MSME Studies IIFT’s MSME Centre aims at providing continuous support to the SME sector by carrying out activities which can broadly classified into conducting Training Programs, provision of Business Intelligence services through comprehensive information hub and acting as a catalyst for Interfacing with other concerned and associated institutions and organizations, both within the country and abroad. Training and capacity building of SMEs both at National and International level. The modules are being designed for SMEs, trade bodies, industry associations, Policy Makers and negotiators. Customised solutions are being provided on case to case basis with sectoral inputs taking leverage of strong industry – academia linkage developed by the centre over its existence of almost 8 years

232

now. This calls for collaboration of the centre with sectoral Export Promotion Councils and commodity boards towards extending the knowledge support on pertinent issues of trade interest for the SMEs. Some of the sustainable partners for the Centre includes APEDA, Council for Leather Exports, Textiles Committee, ACMA, Gems and Jewellery EPC, Elcina Electronic Industries Association of India, Engineering EPC, Sports Goods EPC, Pharmaxil, Capexil etc. Other export promotion agencies/bodies with which the centre is working closely includes Rubber Board, Silk Board, Coir Board of India, DC(Handicrafts) etc. Centre has been identified as one of the stakeholders towards Constitution of SubGroup on ‘MSMEs’ under the Planning Commission Working Group on “Boosting India’s Manufacturing Exports” for the Twelfth Five Year Plan (2012-17). Centre has been quite instrumental towards spreading information on regulatory issues across SMEs bringing new business opportunities in foreign markets. One of the most recent initiatives in this regard has been spreading awareness on Unfair Competition Act Law and its impact on SMEs across various clusters: a study conducted with ASSOCHAM. Centre has also entered into an MOU with CII as a joint initiative towards enhancing exports from MSME sector. At international level, Centre have collaborated with Mekong Institute, Thailand, in assisting them towards “Trade and Investment Facilitation” within GMS region and help the region to improve their trade competitiveness. Centre in collaboration with CBI Netherlands (Centre for the Promotion

Annual Report 2013-14

•

The Centre undertook detailed research on different aspects of India’s integration in global value chains.

•

The Centre organised several stakeholder consultation meetings, which have provided an opportunity for two-way dialogue between trade negotiators and trade policy officers on the one hand and stakeholders on the other.

•

The Centre partnered with organisations including the WTO, UNCTAD, UNESCAP and the University of Sussex for organising national/ international training programmes and outreach activities for deepening the understanding of WTO issues among stakeholders at the national and regional level. In partnership with the WTO during 9 September – 1 November 2013, it organised the Regional Trade Policy Course for Asia and Pacific Region.

•

The Centre maintains a comprehensive database of STS and TBT notifications made by WTO members. The database was updated during 2013-14.

•

Under the Indian Technical and Economic Cooperation programme of the Ministry of External Affairs, the Centre for WTO Studies organized three international training programmes on WTO issues for officers and diplomats from developing countries.

•

In partnership with UNESCAP, the Centre for WTO Studies organised 4 trade-related capacity building training programmes for officers, academicians and industry in Myanmar.

Centre for WTO Studies The activities undertaken by the Centre for WTO Studies seek to achieve three broad objectives: (i) to assist India’s trade negotiators and policy makers in participating effectively in the WTO and at the related multilateral trade negotiations; (ii) to enhance the understanding of key trade issues among stakeholders through outreach and dissemination activities; and (iii) to develop capacities within India and in other developing countries for analysing WTO and other trade-related issues through training programmes. Following are some of the key achievements of the Centre for WTO Studies during 2013-14 •

Detailed research by the Centre in agriculture, non-agriculture market access, anti-dumping, subsidies, services, intellectual property rights etc. has strengthened the capacity of the Department of Commerce to participate more effectively in the WTO work programme and in Regional Comprehensive Economic Partnership Agreement (RCEP) trade negotiations. In particular, the research undertaken by the Centre significantly assisted the Department of Commerce in negotiations on Food Security issues in the run up to the Bali Ministerial Conference of the WTO.

Annual Report 2013-14

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Commodity Boards and other Development Authorities, Institutional Trade Facilitation and Public Sector Corporations

of Imports from Developing Countries] has been conducting training programs for IIFT students on certain core areas like Export management; Market knowledge; Product and production improvement etc.

•

The Centre assisted the Department of Commerce in some of the WTO disputes involving India.

Chapter-8

Indian institute of packaging (IIP) The Indian Institute of Packaging was set up on 14thMay, 1966 with the main objective of promoting the export market by way of innovative package design and development and also to upgrade the packaging standards at National Level. The head office of the Institute is at Mumbai and its branches are located at Delhi, Kolkata, Chennai and Hyderabad. In 2013, State Government of Karnataka has allotted a land at Bangalore for the setting up 5th Branch of the Institute at Bangalore. The construction of this centre will be completed during the 12- Five Year Plan. Under educational activities, the Institute has been conducting a fulltime two years Post Graduate Diploma Programme in packaging technology since 1985 at Mumbai. Subsequently, the similar programme is also started at Delhi, Kolkata and Hyderabad. As on date, more than 2400 students have successfully completed this programme and

all of them ate working in the leading FMCG companies in India and abroad. The Institute also undertakes Basic and Applied Research in the field of packaging for the development of alternative packaging materials for commodity goods and is also involved in the determination of shelf life for various processed food products by considering the characteristics of products and packaging materials for their performance properties. Besides, the laboratories at Mumbai are also accredited to NABL (National Accreditation Board for Testing Calibration Laboratories) as per ISO IEC 17025:2005 under Department of Science and Technology, Ministry of Science & Technology, Govt. of India and the laboratories are engaged for the testing of packaging materials and packages at its wellequipped laboratories at head office Mumbai and other branches at Delhi Kolkata, Chennai & Hyderabad. National Centre for Trade Information (NCTI) ITPO and NIC are co-promoters of the Company and have contributed a sum of Rs. 4 crore (Rs. 2 crore each) as Corpus Fund in the equity contribution of the Company.

Major Activities of NCTI  Trade data based research and analysis – 2/4/6/8/ digit HS classification-India / Target Country – 9/10 digit level  Focus Market: Focus Product – Export potential studies  Drawing / evaluating wish lists / offer lists under various PTA/FTAs of India (existing and prospective) Trade Data Analysis support to Department of Commerce  India-ASEAN FTA  Identification of Tariff lines with high export potential to Eastern and Central European Countries

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Annual Report 2013-14

“India-Canada FTA – Analysis of trade data and Identification of Potential items for India’s wish list

Support to Trade and Industry  Creation and maintenance of websites  Website content management  Market research / studies / surveys  Creation of databases – Importers / Exporters (product category wise)  Electronic Trading Opportunities (ETOs) or live trade enquiries – all markets all products  Uploading 52 issues of E-weekly ‘Trade Point-India’ annually on its website containing approximately 250 Trade Leads each week.  Setting up Trade Information Centres  Trade Fair / exhibitions support: Web & Database Support Provided to ITPO  Development & Maintenance of all Fair Specific WebsitesCorporate, RTI websites of ITPO  Creation & maintenance of all fair specific websites, updates on the Corporate, RTI Websites of ITPO.  Creation of Sector Specific Database & Participants Feedback Survey for ITPO  Collection and compilation of Sector Specific Database and Participants Feedback Survey for various fairs organized by ITPO.  Website design and development  Database creation  Visitor registration  Feedback surveys For details please visit NCTI website: www.ncti.gov.in Quality Control and Pre-Shipment Inspection Agency In the post WTO scenario with importing member countries have been imposing stringent requirements to protect the health & safety of their population, compulsory certification is mandated & imposed in food sector for items like marine products,

Annual Report 2013-14

milk products, egg products, honey, poultry products, meat products, gelatinossein and crushed bones, animal casings etc., so as to address the import regulation of major trading partners. So the major function of the Organisation, i.e. inspection & certification for exports basically for areas related to health & safety & any other requirements of

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Commodity Boards and other Development Authorities, Institutional Trade Facilitation and Public Sector Corporations



importing Governments once again gained importance. Exports certification is carried out through its field organisation (EIA), and is based on a system approach to include GHP/GMP/HACCP and also tailored to meet the requirements of the importing countries.

Chapter-8

Export Inspection Council of India (EIC) The Export Inspection Council of India (EIC) was set up by the Government of India under Section 3 of the Export (Quality Control & Inspection) Act, 1963 as an apex body to provide for sound development of export trade through quality control and preshipment inspection. The Act empowers the Central Government to notify commodities and their minimum standards for exports, generally international standards or standards of the importing countries and to set up suitable machinery for inspection and quality control. The EIC is assisted in its functions by the Export Inspection Agencies (EIAs) located at Chennai, Kochi, Kolkata, Delhi and Mumbai having a network of 28 suboffices and laboratories to back up the preshipment inspection and certification activity. In addition, EIC also designates inspection agencies and laboratories to supplement its own activities as required. The main functions of EIC are (i) to advise the central government regarding measures to be taken for enforcement of quality control and inspection in relation to commodities intended for export and (ii) to draw up programmes for quality control and inspection of commodities for exports. In the changing Global Scenario, as Indiaâ&#x20AC;&#x2122;s trading partners are installing regulatory

236

import controls, the EIC has re-fashioned its role to develop voluntary certification programmes besides regulatory export control, especially in food sector. The Council is seeking recognition for its certification by official import control agencies of its trading partners, as per provisions of WTO agreements, to facilitate easier access to their markets for Indian exporters. Activities and Achievements Export Certification : Certification continues to be mandatory in the areas of fish & fishery products, milk products, fresh poultry products, egg products, meat & meat products, animal casing, crushed bones, gelatin and honey. The EIAs also continue to certify other notified products such as basmati rice, black pepper etc and non-notified products such as Coir Pith, Tea, and Auto Parts etc. Steps were taken to bring some more areas/products under the certification regime of EIC. These included products such as crushed bones, gelatin, animal feeds and casing Residue Monitoring : Implementation of Residue Monitoring continued to be an important area. Residue Monitoring Plans were implemented in dairy, honey, poultry and egg sectors. During 2013-14, a total number of 897 samples were tested. During April 13 - March 2014, 842 samples have been tested for the entire range of residues relating to pesticides, antibiotics, heavy metals and other chemicals as required by the European Commission. Certificates of Origin : EIC/EIAs continued to issue Certificates of Origin under various preferential tariff schemes. As on date, EIC

Annual Report 2013-14

•

Generalized System of Preferences

•

Global System of Trade Preferences

•

Asia Pacific Trade Agreement

•

SAARC Preferential Trading Arrangement

•

FTA between India and Sri Lanka

•

India Afghanistan FTA

•

India Thailand FTA

•

India Singapore Comprehensive Economic Cooperation Agreement

•

South Asian Free Trade Area

•

PTA with Chile

•

India MERCOSUR PTA

•

India Korea CEPA

•

ASEAN India FTA

•

India Malaysia CECA

•

India Japan CEPA

Whereas for the year 2012-13, the EIAs issued 1008636 preferential tariff certificates under various Preferential Tariff Schemes, during April 13 - March 2014, the number of certificates issued by the EIAs under various preferential tariff schemes stood at 1019411. Strengthening Laboratory Capabilities EIC is also concentrating on strengthening of its laboratory capabilities. The laboratories at Mumbai, Kochi, Chennai and Kolkata were upgraded with new equipment. New premises for EIA Kolkata lab was finalised and the lab has started functioning from the new premises ensuring that there is better working atmosphere and more credibility is added to the lab network.

Annual Report 2013-14

Computerisation and Modernisation •

New Project initiative: A new project for complete digital issuance of Certificate of Origin (CoO) under various schemes has also been taken up by the department on the ‘complete managed hosting concept’. Through this system, all types of CoO would be issued online as well as all related fee for CoO could be paid online through various possible payment modes. This system would have more facility as compared to the existing system for issuance of CoO under various schemes and will be more user-friendly. The process of selecting the new vendor is in advanced stages of completion.

•

Agreement with M/s PCS was signed to support the Facility Management Services. Under this agreement, M/s PCS maintain the IT-Infrastructures at EIC, EIAs and their sub-offices including website management, provide Data Entry Operators and Resident Engineers for the smooth functioning of the offices.

•

To establish a new & better way of communication among the offices of EIC/EIAs and with the stakeholders/ customers e-certification systems for Fish and Fishery products intended for exports to European Union were established which has provided for transparency and objectivity to the certification process. This project is has been extended in the scheme of peanuts as well.

Agreements with Other Countries Continued efforts were made towards entering into Memoranda of Understanding (MoUs)/ Mutual Recognition Agreements (MRAs)/

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Commodity Boards and other Development Authorities, Institutional Trade Facilitation and Public Sector Corporations

/ EIAs are issuing preferential certificates of origin under the following 15 schemes.

Equivalence Agreements with the major trading partners so that EICs certification is accepted by these countries. Effective steps were taken towards negotiating agreements with Israel for food & agricultural items, Brazil for fishery products, Malaysia for groundnuts and Australia for egg products. Further discussions were also held to enter into similar agreements with Japan, Thailand, Mauritius and Sri Lanka. The Agreement with Singapore in the electrical and electronics sector was further streamlined.

Chapter-8

Exports The value of exports certified by the EIAs during the year 2012-13 was Rs. 12871.34 crore. During April 13 - March 2014, the value of exports certified by the EIAs was Rs. 13099.63 crore.

are tested for other government departments and industry on cost basis. The total revenue generated in 2012-13 by the organization was to the tune of Rs 93.68 crores. The revenue realized between April 13 â&#x20AC;&#x201C; March 2014 is Rs 103.59 crores. The break-up of actual fees realised under various schemes and activities during April 13 - March 2014 is given below: Table 8.14

(Rs lakhs)

Schemes/ Activities

Actual Fees Realized till 31 March 2014

Inspection & certification

Fish & Fishery Products

The EIAs have also been authorised to issue various types of certificates for consignments exported such as Health, Authenticity, NonGenetically Modified Organism, etc.

Basmati Rice

226.14

Black Pepper

83.19

Egg products

101.46

Fees and Revenue Generation

Milk & Milk Products

114.98

The basic source of revenue of EIC/EIAs continued to be from monitoring and inspection fee realized for different notified and non notified products as well as certification under GSP and other preferential tariff schemes. The fee charged is at a level of 0.4% of FOB value for products inspected under Consignment wise inspection, while it is 0.2% of FOB value for products under systems certification.

Poultry

4.96

Honey

41.96

Testing is mostly carried out for samples collected for the purpose of inspection & certification and are generally not charged separately, while some amount of samples

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Chemical & Allied

products

Engineering

1856.44

31.46 69.46

Other Schemes Others Certification Schemes

1796.11

Total from Inspection Certification

4211.18

Certificate of Origin

Annual Report 2013-14

5651.44

Other Income Other Income Total

496.41 10359.03

Source: Department of Commerce

Footwear Design & Development Institute (FDDI) Footwear Design & Development Institute popularly known as ‘FDDI’ working under the aegis of the Ministry of Commerce & Industry, Government of India is rated amongst the premier leather products, footwear, fashion, design and retail institution in the world & has been playing a pioneering role in enhancing the competency and performance of the industries globally. The Institute, having Pan-India presence with eight well designed campuses at Noida, Fursatganj, Chennai, Kolkata, Rohtak, Chhindwara, Jodhpur and Guna is providing trained human resource to the industry. FDDI has been rated No. 1 institute in a nationwide survey conducted by Competition Success Review ‘India’s Best 'B' Schools

Annual Report 2013-14

2013’ under the category of Other Promising B - Schools in India and Other Sectorwise Promising B -Schools in India for Retail Management in its November 2013 issue and has also achieved the top position in the “All India Best B- School Survey- 2013” conducted by the leading ‘Business & Management Chronicle’ magazine in its September 2013 issue which proves the authenticity of the programmes, curriculum & placement offered to FDDI graduates. Support to Artisan' Programme: FDDI provided training to workers and artisans involved in the manufacturing of footwear in SME's and village clusters under the `Support to Artisan' Programme. Under the 12th Five Year Plan, FDDI has trained 30402 artisans by 31st March 2014 in the clusters of Jaipur, Alwar, Jodhpur, Churu, Pali and neighbouring Districts in the State of Rajasthan, clusters of Patiala, Malhot, Muktsar, Fazilka, Jalandhar, Ludhiana and neighbouring Districts in the State of Punjab, clusters of Rae Bareli, CSJM Nagar, Unnao, Lucknow, Kanpur and neighbouring Districts in the State of Uttar Pradesh and in the clusters of West Bengal and Maharashtra. The scope of the training programme included up-gradation of the present skill

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Commodity Boards and other Development Authorities, Institutional Trade Facilitation and Public Sector Corporations

Certificate of Origin

Clusterwise detail of Trainees

Chapter-8

5120 5100 5080 5060 5040 5020 5000 4980

5101

5100

5041

5031 5029

scope technology of the training included up-gradation of the present skill and and induction The of latest to programme the Placement Linked Skill Development induction latest technology to the Programme artisans to bring 360 degree intervention in the area (PLSDP): artisans to bring 360 of degree intervention of technology improvement, effective use of material, tools & techniques for different in the area of technology improvement, In order to and overcome the acute shortage of of operation of Footwear Making, Trust Building SHG Formation, Establishment effective use of material, tools & techniques trained manpower in the leather & footwear Centralized Resource Centers (CRC's), Process Product & Design Development and for different Development operation of Market of Footwear Linkages. industry and to provide gainful employment Making, Trust Building and SHG Formation, to the unemployed youth, Department of Establishment of Centralized Resource Industrial Policy & Promotion (DIPP), Ministry Centers (CRC's), Process Product & Design of Commerce & Industry, Government of India launched Placement Linked Skill Development Development and Development of Market Programme (PLSDP). FDDI was also nominated Linkages. as one of the main implementing agency for this job.

Training under 'Support to Artisan' Programme in progress

The areas of specialization of the training were Cutting, Closing, Designing, Lasting & Sole Adhesion andProgramme Finishing. in Training under 'Support to Artisan' progress

Hence, FDDI established six full-fledged

Placement Linked Skill Development Programme (PLSDP): Operatorâ&#x20AC;&#x2122;s Training Centres at Agra, Kanpur,

The areas of specialization of the training Rae Bareli, Bahadurgarh, and Ranipet In order to overcome the acute shortage of trained manpowerKolkata in the leather & footwear were Cutting, industry Closing, and Designing, Lasting & having state-of-the artmachinery in Cutting to provide gainful employment to the unemployed youth, Department of Sole Adhesion Industrial and Finishing. and Closingofoperations. Policy & Promotion (DIPP), Ministry Commerce & Industry, Government of India launched Placement Linked Skill Development Programme (PLSDP). FDDI was also nominated as one of the main implementing agency for this job. 240

Annual Report 2013-14

The PLSDP is being conducted on a continuous basis & FDDI has trained 108006 fresh & unemployed youths under the 11th Five Year Plan& the period ending 31st March 2014 of the 12th Five Year Plan of the Government of India.

Detail of Trainees & Employment provided under PLSDP 59000 60000

47115

50000 40000 30000 20000

22006

27000 17973

20758

No. of Trainees No. of Trainees Placed

10000 0 11th Five Year Plan

12th Five Year Plan (2012-13)

Under the PLSDP, FDDI has covered 48663 candidates i.e. 45.50% from SC category, 1028 candidates i.e. 0.95% from ST category, 31972 candidates i.e. 29.60% from OBC category, 24538 candidates i.e. 22.71%

12th Five Year Plan (2013-14)

from General category & 1805 candidates i.e. 1.67% belongs to Minorities. Out of the total trainees, 22772 were female candidates which constitute 21.08% of the total trainees.

Catrgory of Trainees 50000 45000 40000 35000 30000 25000 20000 15000 10000 5000 0

48663 31072

24538

8105

1028

General

OBC

Minorities

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Commodity Boards and other Development Authorities, Institutional Trade Facilitation and Public Sector Corporations

At these centres, unemployed youths belonging from the economically weaker section of the society are being selected, trained & provided assistance to get employment in the footwear industry at the shop floor level operations.

Chapter-8

Revenue Growth: FDDI has made significant progress in the last few years. The total revenue of FDDI for the FY 2013-14 is Rs. 46.78 Crores which is nearly 14 times of that of the earning in the year 2005 (Rs. 3.19 Crores in 2005). International Consultancy/Tie-Ups For Exchange Programmes: Crossing the national boundaries, the Institute has created a niche for itself in global arena. The leading international institution/organizations like Thomas Bata University (TBU), Czech Republic; ARS Sutoria, Italy; Centre of Excellence for Leather & Leather Goods (COEL) of Bangladesh have been linked up with FDDI and many more are to join hands for mutual cooperation and support. The delegations from France, Indonesia, Germany, Botswana, Ethiopia, South Africa, Nike-Indonesia have visited FDDI this year. FDDI is supporting the Leather & Footwear industry in Ethiopia under its â&#x20AC;&#x2DC;Growth & Transformation Planâ&#x20AC;&#x2122; (GTP) for technical upgradation. The project duration shall be of three years (maximum) with projected earning of US$ 1.9 Million out of which US$

242

9,60,750 Million has already been received by FDDI. The similar plan for the Local Enterprise Authority (LEA) at Botswana was also undertaken. The LEA has agreed for the intervention by FDDI for the Skill Up-gradation of its staff and clients at Botswana. The revenue for six months of such intervention is US$ 1,94,200. The MoU with South Africa is also signed on similar lines. Intermittently, FDDI has also provided consultancy to the neighbouring countries such as Vietnam, Sri Lanka, Bangladesh etc. Testing and Other Support Services: Special initiatives were taken up by FDDI to ensure international standards of facilities and support services at both the International Testing Centers of FDDI (ITC, Noida and Chennai). The International Testing Centers of FDDI today boast the pride of being the only Testing centre of the country having ISO 17025 certification from DAKKS, Germany and the prestigious quality certifications such as - ISO 9001 & ISO 14000.

Annual Report 2013-14

managers, fashion designers, technologists to keep pace with the growing demand of the industry and maintaining uniformity in teaching standard at all of its campuses. The professional programmes are conducted by FDDIâ&#x20AC;&#x2122;s School of Footwear Design & Production Management (SFDPM), School of Retail Management (SRM), School of Leather Goods and Accessories Design (SLGAD), School of Fashion Design (SFD) and School of Business Management (SBM).

R & D Activities : Being an apex Institute for footwear, the Institute has always been a trendsetter and has made remarkable progress by developing methodologies in footwear research. Safety Shoes for Indian Navy have been developed, Boot ankle leather derby type direct moulded PU midsole &moulded TPU sole have been developed for Delhi Police apart from development of Marching Boots.

Training Capacity: Understanding the acute shortage of qualitative trained manpower across levels in the Industry as one of the major hindrances towards development and growth of the sector, FDDI has expanded its training capacity from mere 184 in the year 2005 to 3200 in the academic year 2013-14 which is 5000 proposed in the academic year 2015-16.

Academic Programmes : FDDI conducts wide range of Under Graduate, Post Graduate & Integrated professional programmes in the area of Footwear Design, Technology, Indian Diamond Institute (IDI) Management, Creative Designing & CAD/ The Indian Diamond Institute (IDI) was CAM, Leather Goods & Accessories Design, Training Capacity: Understanding the acute shortage of qualitative trained manpower established as adevelopment Society and in the year 1978 Fashion Merchandising, across Visual levels in Merchandizing, the Industry as one of the major hindrances towards growth of the sector, FDDI has expanded its training capacity from mere 184 in the year at Surat, Gujarat, with the objective of Marketing and Retail Management etc. thus, 2005 to 3200 in the academic year 2013-14 which is 5000 proposed in the academic enhancing the quality, design and global providing trained yearhigh-class professional, 2015-16.

4500

3200

4000

2010

3000 2500

1460

2000 1500

500

4000

2680

3500

1000

5000

FDDI - Training Capacity

5000

940 190

220

340

1020

700

Indian Diamond Institute (IDI)

Annual Report

The Indian Diamond Institute (IDI) was established as a Society in the year 1978 at Surat, Gujarat, with the objective of enhancing the quality, design and global competitiveness of the Indian jewellery. The Institute has developed itself as a premier 2013-14 institute for imparting technical skills to the Gems &Jewellery industry. The Institute is sponsored by the Department of Commerce and is a project of Gems and Jewellery Export Promotion Council (GJEPC).

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Commodity Boards and other Development Authorities, Institutional Trade Facilitation and Public Sector Corporations

FDDI laboratories have extended the services to include site inspection of footwear, garments, leather goods & accessories as per International Standards. This will help in quality supply for various Government organizations/institutions. Exporters can also get benefit of the services.

Chapter-8

competitiveness of the Indian jewellery. The Institute has developed itself as a premier institute for imparting technical skills to the Gems & Jewellery industry. The Institute is sponsored by the Department of Commerce and is a project of Gems and Jewellery Export Promotion Council (GJEPC). The Institute conducts various diploma and other courses related to diamond &jewellery trade and industry. It also offers the three year diploma course on Diamond, Gem &Jewellery Design & Manufacture. Institute’s Diamond Certification & Grading Laboratory has been recognized world over and its laboratory is also authorised by the DGFT, MOC&I, as per Chapter 4 of FTP 2009-14 for certification / grading of diamonds of 0.25 Ct and above. IDI has been accorded with recognition as a Scientific & Industrial Research Organisation (SIRO) under Department of Scientific & Industrial Research, Ministry of Science & Technology, Government of India. It has been also recognised as Anchor Institute (Gem & Jewellery) by Industries Commissionerate, Government of Gujarat.

PUBLIC SECTOR CORPORATIONS (i) Minerals and Metal Trading Corporations Limited (MMTC) MMTC is widely recognized as one of the largest International Trading Companies of India and the first Public Sector Undertaking to be awarded “Premier Trading House” status in the country. It is actively involved in exploring overseas markets for exports and sourcing material for domestic needs. With focus on ‘bulk’ operations, MMTC primarily has six core commodity groups viz. Minerals, Precious Metals, Coal & Hydrocarbons, Fertilizers, Agro commodities and Metals. Financial Performance During FY 2013-14, the company achieved a turnover of Rs. 25,075 crores with 38% increase in exports segment of the company over previous year. Also, company has achieved a net profit of Rs 19 crores as compared to last year’s Net Loss of 71 crores showing 126% increase.

Table: 8.15 Financial performance for the FY 2013-14 vis-à-vis FY 2012-13

(Rs. in Crores)

TRADE PERFORMANCE

Financial Performance FY 2012-13 Exports 2,980 Imports 20,954 Domestic 4,482 Total Turnover 28,416 Profit Before Tax From Ordinary Activities 117 Profit After Tax (Net Loss) (71) Net Profit To Turnover (%) -

244

Financial Performance FY 2013-14 4,127 18,714 2,234 25,075 225 19 0.08

Increase/ (Decrease) % 38.49 (10.69) (50.16) (11.76) 92.31 126.00 -

Annual Report 2013-14

During this period, MMTC has initiated process by engaging a consultant for up gradation of present ERP system with latest and most suitable ERP solution based on changed business processes of the company. The company has successfully continued with e-payments, e-tendering & e-auction platform for enhanced transparency, accuracy and reliability. Also, IT systems security management has been further improved through deployment of layered security set-up leading to higher level of security, reliability and availability of system. Applications were deployed to enhance the quality of retail business management and also for increased customer satisfaction. SUBSIDIARY COMPANY MMTC Transnational Pte Ltd., Singapore (MTPL) is a wholly owned subsidiary company of MMTC. During FY 2013-14, it has achieved a business turnover of US$ 369 million (unaudited). MTPL continues to enjoy prestigious "Global Trader Programme" (GTP) status awarded to it by International Enterprise, Singapore since FY 2000. To expand and give impetus to growing trade between India and Africa, MMTC has opened an office at Johannesburg, South Africa in January 2011. Infrastructure Development NEELACHAL ISPAT NIGAM LTD. (NINL) NeelachalIspat Nigam Ltd., a company promoted by MMTC, IPICOL, NMDC, MECON

Annual Report 2013-14

etc., has set up an integrated iron & steel plant of 1.1 million tones capacity, coke oven of 0.8 million tonne capacity along with a byproduct plant, captive power plant of 62.50 MW steel melting shop, BOF, GCP, CCP etc. with total expenditure of nearly Rs. 3,500 crore of Kalinganagar, District Jajpur, Orissa. The total turnover of the company for the period April-March, 2014 is Rs.1,625.61 crore. The Phase II of the project Steel Making Facilities through Siemag, Germany with an estimated cost of Rs.1,640 crores is completed and production of steel billet has already commenced during FY 2013-14. Other Projects Aiming at diversification and with a view to add value to its existing trading operations, the Company has undertaken various strategic initiatives following public-private partnership route. The initiatives taken by MMTC are MMTC-Pamp India Private Limited, Retailing Jewellery joint venture - MMTC-GitanjaliPvt. Ltd, Iron ore berth at Ennore Port - M/s. SICAL Iron Ore Terminals Limited (SIOTL), TM Mining Ltd (TMML) for mining exploration, Free trade and warehousing zones at Haldia and Kandla, Exploration and development for Coal mining at Gomia in Jharkhand State. Ores & Minerals MMTCâ&#x20AC;&#x2122;s export of ores and minerals were estimated at Rs 2,037 Crores during 2013-14 registering a growth of 46 per cent over the same period of the previous year. Human Resource Total manpower of the company as on 31st March, 2014 was 1513* (569 officers and

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Commodity Boards and other Development Authorities, Institutional Trade Facilitation and Public Sector Corporations

COMPUTERISATION & TECHNOLOGY ELEVATION

944 staff) comprising of 331 SCs, 130 STs, 133 OBCs, 34 PWDs and 310 women employees. * Includes 5 Directors, CVO and MICA employees.

Chapter-8

WELFARE MEASURES IN RESPECT OF SC/ST/ PWD There is a Chief Liaison Officer at CO and Liaison Officer at ROs to ensure compliance of Presidential directives in regard to facilities/ concessions available for reserved category employees. Permanent ramp at the main entrance of office, wheel chairs, lifts equipped with auditory signals, floor requisition buttons in Braille Symbols for visually handicapped employees are provided at all offices. IMPLEMENTATION OF OFFICIAL LANGUAGE To promote usage of the Official Language by employees of the company, several programs in the form of Hindi Workshops, Hindi Week/ Fortnight were organized at the Corporate Office and Regional Offices. Corporate Social Responsibility There were no profits for the year 2012-13, thus no funds were earmarked for CSR/SD Projects. However a total of Rs. 65.08 lakhs, the unutilized funds of previous years, was spent on CSR/SD projects. Two major projects were undertaken: 1) Employment linked skill development training for 180 candidates in Jajpur, Odisha and Energy Efficiency measures in MMTC Owned premises. Apart from this, MMTC also contributed towards the CM Relief Fund for the Odisha Cyclone- Phailin and distributed blankets to

246

the night shelters in Delhi& Rajasthan. Other activities focused on education of children living in slums and skill development of differently-abled persons of Delhi which were also undertaken. Gender Initiatives Undertaken Congenial atmosphere prevails for working women in office. There is a Committee on prevention of sexual harassment to working women employees at Corporate Office and Regional Offices headed by senior level executives. Information On New Initiatives And Ideas Adopted Scheme for Knowledge Sharing introduced in the Company with the objective of updating business related knowledge of employees. Besides, employees are encouraged to put forth their ideas for improvement in trade and service matters. Major Achievements •

Most Caring Companies of India Award - for contributions made in the field of CSR – by The World CSR Congress.

•

Star Performer Award for the year 201112 in the product group of Basic Iron and Steel (Large Enterprise) by EEPC (National Award).

•

Top Exporters for the year 2010-11, Silver Trophy, Medium Enterprise by EEPC India (N.R.).

•

TCC Exim Award (II position) in the import category for 2011-12 by The Tamil Chamber of Commerce, Chennai.

•

11th Rank in 2012 on the basis of net sales and 14th rank in terms of Market

Annual Report 2013-14

THE STATE TRADING CORPORATION OF INDIA LTD. (STC) STC was set up on 18th May 1956 primarily with a view to undertake trade with East European countries and to supplement the efforts of private trade and industry in developing exports from the country. Since then, STC has played an important role in country’s economy. It has arranged imports of essential items of mass consumption (such as wheat, pulses, sugar, edible oils, etc.) and industrial raw materials into India and also contributed significantly in developing exports of a large number of items from India. The core strength of STC lies in handling exports/imports of bulk agro commodities. Over the years, STC has also diversified into exports of steel, iron ore, molasses and imports of bullion, hydrocarbons, minerals, metals, fertilizers, petro-chemicals, etc. STC is today able to structure and execute trade deals of any magnitude, as per the specific requirement of its customers. Table: 8.16 Performance of STC during 2011-12, 2012-13 and 2013-14

(` Crore)

2011-12 2012-13 2013-14 Actuals Actuals Actuals Exports

344

1563

1781

Imports

29961

17015

13546

139

120

Total Turnover

30444

18698

15374

Profit Before Tax

17.80

14.42

(-)492

Domestic

Annual Report 2013-14

Performance 2013-14 During the year, total turnover of STC amounted to ` 15,374 crore as against ` 18,698 crore in 2012-13. The decline in turnover vis-à-vis previous year was mainly due to lower allocations made by GOI for import of urea leading to reduce imports. Exports During the year, STC achieved an export turnover of ` 1,781 crore – the best performance during the past five years. STC continued to undertake export of wheat as one of the nominated CPSEs out of the surplus stocks of wheat held by FCI. A total quantity of 10 lakh MT of wheat was contracted for exports during the year and the same resulted in a turnover of ` 1,774 crore as against wheat export turnover of ` 1,525 crore in the previous year. STC also exported tea worth over ` 4 crore. Imports The import turnover at ` 13,546 crore was 20% lower than the previous year mainly due to reduced imports of urea handled by the Company on behalf of GOI. Imports of bullion by STC continued to be hit due to restrictions on gold imports by way of increase in customs duty and changes in the policy of gold import aimed at controlling the current account deficit. However, the Company successfully imported and sold bullion worth ` 11,654 crore – marginally higher than sales worth ` 11,258 crore made in 2012-13. Thus, bullion once again emerged as the single largest item of STC’s imports. During 2012-13, the Company had imported urea worth ` 5127 crore (2.04 million MT) on

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Commodity Boards and other Development Authorities, Institutional Trade Facilitation and Public Sector Corporations

Capitalization by Business India’s Super 100 rankings published in Business India on 23rd December 2012.

behalf of GOI. Imports of urea came down to less than one third at ` 1495 crore (0.73 million MT) during 2013-14 due to lower authorisations by the GOI. During the year, the Company was able to develop import of coal/coke for private parties and effected sales worth ` 220 crore as against total import sales of ` 121 crore in the previous year.

Chapter-8

Imports of edible oils and pulses were adversely affected during the year due to no imports of these two items for Public Distribution System. Import sales of edible oils and pulses on commercial account amounted to ` 69 crore and ` 34 crore respectively. The Company imported maize amounting to ` 60 crore on behalf of actual users under Tariff Rate Quota (TRQ) Policy of the Govt. of India as against ` 35 core worth of maize imported during 2012-13. Domestic sales During the year, domestic sales by the Company amounted to ` 47 crore contributed mainly by jute goods (` 19 crore), iron ore pellets (` 16 crore) and chana (` 6 crore). Profitability During the year, the Company earned a trading profit of ` 183 crore, which was 54% higher than the trading profit of ` 119 crore earned in 2012-13. On an overall basis, the Company reported a loss of ` 492 crore during the year as against a profit before tax of ` 14 crore during 2012-13. However, the loss was due to provisions & write-offs (net) of ` 566 crore made for doubtful debts/advances as a matter of prudence.

248

Activities of STC in The North Eastern Region The State Trading Corporation of India Ltd. (STC) has a Branch Office in Kolkata which is engaged in export, import and domestic trading from West Bengal and North Eastern States of the country. The Branch is involved in trading of edible oil, bullion, manganese ore, coal, jute, tea etc. The Branch is exploring possibility of tying up with BPCL (one of the major manufacturer and supplier of Bitumen) through associates in Guwahati and is in touch with various organizations viz APO, BRO, State Governments in the North Eastern States and Sikkim for marketing and supply of Bitumen. Branch has supplied huge quantities of Tea to Assam Rifles in the past and is now making efforts for supply of Dry Ration viz. Rice, Wheat , Atta, Edible Oil, Salt, etc. WELFARE OF SC/STs The Company has been implementing the policies, directives and guidelines issued by the Government of India from time to time with regard to recruitment of SC/ST/OBC and differently abled candidates. During the year, 5 candidates from SC category, 1 from ST, 5 from OBC and 2 from minority category were recruited by the Corporation. SPICES TRADING CORPORATION LIMITED (STCL) STCL was originally incorporated in the name and style as “Cardamom Trading Corporation Limited” as a Private Limited Company under The Companies Act, 1956 in October 1982. With the diversified trading activities, the company’s name has been further amended its name from Spices Trading Corporation

Annual Report 2013-14

Objectives : •

To trade in spices, other agricultural commodities, fertilizers, pesticides in the domestic as well as global markets.

•

To develop core competitiveness in selected areas and exploit the market opportunities in these areas to the best advantage of the Company and to lay emphasis on quality of services to its Clientele in the long-term business relationship.

•

To promote sale / export of Indian Spices and other Agricultural commodities.

•

To make optimum utilization of infrastructure available with the Company.

•

To strive to pay adequate returns to the parent company (The State Trading Corporation of India Limited).

•

To fulfil Company’s social responsibility by following ethical business practices and reinforcing commitment to customers, employees, partners and communities.

•

To undertake on a continuous basis training/re-training of existing manpower and induct professionally qualified young talent so as to create a cadre of highly professional and motivated managers.

•

To become a credible company of international standards of Corporate governance and offer quality services.

Annual Report 2013-14

Performance The company has been incurring losses from the year 2008-09 and the net worth of the company as on 31.03.2013 is [-] Rs.2012.13 crores. During 2012 the company engaged the services of a consultant to assess its sustainability due to continuous losses incurred. Based on the recommendation of the consultant the Board decided to windup the company and offer Voluntary Separation Scheme to its employees. The proposal of winding up was forwarded to its parent company M/s. STC of India and the Ministry of Commerce. The Union Cabinet in its meeting held on 13.08.2013 had approved the winding-up of the company. Accordingly, the company has filed an application in the Hon’ble High Court of Karnataka for compulsory winding-up of the company u/s 433 [a] of The Companies Act, 1956. The performance of the company for the year 2012-13 vis-à-vis previous year is summarized below: Table 8.17

Rs. in crore

Particulars 2012-13 2011-12 Income Sale of Goods 102.43 127.78 Sale of Services 2.86 4.21 Interest Income 0.72 0.81 Other Trade Revenues 0.27 0.15 Other Receipts 3.24 2.96 109.52 135.90 Financial Trading Profit 2.83 3.49 Profit/[Loss] before -296.12 -284.66 Tax Net worth -2102.13 -1806.00

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Commodity Boards and other Development Authorities, Institutional Trade Facilitation and Public Sector Corporations

Limited to “STCL LIMITED” and fresh Certificate of Incorporation under the name of STCL Limited has been obtained with effect from August 13, 2004.

Service to farmers:

Chapter-8

•

The presence of STCL in Plantation areas in the State of Karnataka and effects distribution of fertilizers, agro chemicals and other inputs manufactured by reputed companies at competitive prices and thus the farmers’ interest are not exploited by the middlemen and traders. The timely supply of fertilizers had helped the farmers in carrying out their fertilizer application/operations on time, which has boosted their productivity / production.

•

STCL is regularly conducting cardamom Auctions and due to good auctioning practices, adopted, the growers are assured of realizing reasonable price for their produce. The auction practices followed are also benchmark for other auctioneers.

•

STCL has established Chilli Processing Plant at Byadgi in Haveri District of Karnataka and Steam Sterilization Unit at Chhindwara, Madhya Pradesh. These projects help the growers to get remunerative price by value addition

for their produce. These Projects shall achieve the following objectives:

• To encourage farmers to produce organic and conventional spices (Black pepper and chillies to meet the export demand. • To increase the export share of value added products from India to the world spice market. • To help farmers to have higher realization.

PROJECT AND EQUIPMENT CORPORATION LTD (PEC). PEC Ltd. was formed on 21st April, 1971 as a wholly owned subsidiary of STC. PEC Limited became an independent Company under the Department of Commerce w.e.f. 27th March, 1991. PEC is primarily engaged in export of projects, engineering equipment, manufactured goods, defence equipment & stores, and import of industrial raw materials, chemicals, bullion and agricultural commodities. As part of activities aimed at export and import of projects and goods, PEC engages in counter trade and operates special trading arrangements for exports.

Table 8.18 Performance of the Corporation since 2011-12

Rs. crore

Items Sales Turnover Income Expenditure Profit before Tax Profit after tax

250

2011-12

2012-13

2013-14 Targets

2013-14 (P)

2014-15 Targets

11026.27

11649.02

12000.00

*9700.00

12500

159.73

159.63

182.75

100.45

134.65

41.19

46.56

55.35

46.45

49.65

118.53

113.07

127.40

54.00

85.00

79.55

96.95

84.40

36.00

56.60

Annual Report 2013-14

2011-12

2012-13

2013-14 Targets

2013-14 (P)

2014-15 Targets

Dividend & Corporate tax

17.43

17.55

20.00

17.55

Equity

20.00

60.00

Reserves

327.63

302.04

407.03

320.49

380.15

Net Worth

347.63

362.04

467.03

380.49

440.15

* Includes Bullion â&#x20AC;&#x201C; Rs. 2040 crore.

During the year 2012-13, PEC achieved sales turnover of Rs. 11649 crore which includes exports at Rs. 3029 crore, imports at Rs. 6960 crore and domestic sales at Rs.1659 crore. Its Earning Per Share (Basic & diluted) was Rs. 162 during the year 2012-13 as compared to Rs. 133 in the previous year. During the year 2013-14, as against MOU target of Rs. 12000 crore, the Company registered a turnover of Rs. 9700 crore upto 31st March, 2014. Table 8.19 Exports & Imports since 2011-12 Exports Item Agro commodities Minerals (Iron Ore) Engineering & Manufactured Goods Others TOTAL

Rs. crores

2011-12 2012-13 2013-14 (P) 622 2917 2540 392

1037

67 3029

2600

1775

1757

1200

Imports Agro Commodities

Annual Report 2013-14

Industrial Raw material Bullion (including Diamond) Engineering & Manufactured Goods Others TOTAL

5242

3758

1695

971

1273

2090

149

115

54 8191

57 6960

5000

PECâ&#x20AC;&#x2122;s agro-exports have increased significantly in recent years. During the year 2012-13, PEC exported wheat, rice, soya meal and maize, of which the major component was wheat valued at Rs. 2191.90 crore. PEC also executed contracts for supply of line hardware, cables & conductors, insulators, steel wires, etc. to Ethiopia, Kenya, Liberia, Nepal and Bhutan. Key Initiatives Over the years, business of PEC has transformed, with industrial raw material, commodities and bullion constituting major part of its turnover and profit. Some of the key initiatives of PEC are aimed at consolidation of existing line of business and selective diversification into sustainable business areas, so as to improve operational

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Commodity Boards and other Development Authorities, Institutional Trade Facilitation and Public Sector Corporations

Items

efficiency and achieve cost effectiveness. PEC continues to strive in its efforts to capture new opportunities in international as well as domestic trade and looks forward to implement higher targets in future, as mandated by the Department of Public Enterprises.

Chapter-8

Public Redressal Mechanism The Company has a proper mechanism for registration and time bound disposal of grievances received from the public. Grievance officers both for Public and Staff grievances have been designated, and their details and contact information is uploaded on the PEC website. A complaint box has been placed at reception and Vigilance Cell. Further, a link to http://pgportal.gov.in under the heading “Public Grievances” on the home page of PEC’s website has been provided to help citizens lodge/monitor the grievances electronically. Any member of the public who has any grievance against the company or wants any information/clarification etc. may approach Public Grievance Redressal Officer whose details are available on the corporation’s website, namely, www. peclimited.com.

industry from different regions of the country in its events in India and abroad. Financial Highlights During 2013-14, ITPO’s total income would be Rs.341 crore (provisional) as compared to Rs.336.48 crore in 2012-13 while the total expenditure is anticipated at Rs.191 crore (provisional) as against Rs.184.19 crore incurred in 2012-13. ITPO is anticipating a surplus of Rs.160 crore (provisional) in 201314 as compared to actual surplus of Rs.152.29 crore in 2012-13. Fairs In India : India International Leather Fair, New Delhi

India Trade Promotion Organisation (ITPO) is the premier trade promotion agency of India, provides a broad spectrum of services to trade and industry and acts as a catalyst for growth of India’s trade.

The 3rd edition of India International Leather Fair was organized at Pragati Maidan, New Delhi July 4-6, 2013 with the active support of Council for Leather Exports (CLE), Central Leather Research Institute (CLRI), Indian Shoe Federation (ISF), Indian Footwear Components Manufacturers Association (IFCOMA), and Indian Finished Leather Manufacturers Association (IFCOMA) and Indian Finished Leather Manufacturers Association (IFLMEA). The fair covered a gross area of 4000 sq. mtrs. There were 105 exhibitors, including 38 from overseas countries mainly from China, Taiwan, Germany and Italy. The business visitors numbering 4847 visited the fair, out of which 49 were from overseas from countries such as China, UAE, UK, USA, Nepal, Afghanistan, Serbia, Jordan, Turkey, Italy, France etc.

With its Headquarters at Pragati Maidan, New Delhi and regional offices at Bangalore, Chennai, Kolkata and Mumbai; ITPO ensures representative participation of trade and

Compared with IILF Delhi 2012, the number of trade visitors to IILF Delhi, 2013 increased by 39% whereas the area marketed increased by 14%.

India Trade Promotion Organisation (ITPO)

252

Annual Report 2013-14

The maiden event of India International Printing & Packaging Fair organized by ITPO was held at New Delhi during August 6-9, 2013, in an area of 437 sq.mtrs. There were 32 participants who exhibited their products in the event. The visitors to the exhibition were from Australia, China, Iran, Japan, Kazakhstan, Nepal, Nigeria, Russia, Singapore, Sri Lanka, UAE, UK and USA. 19th Delhi Book Fair, New Delhi The 19th edition of Delhi Book Fair was organized by ITPO in collaboration with Federation of Indian Publishers for the event held during August 23-31, 2013 at Pragati Maidan. There were about 200 participants from India and abroad who participated in the Fair in an area of 4,434 sq.mtrs. “Libraries & Readership” was chosen as the theme for the event. Seminars were also organized during the currency of the event, including a debate amongst University students on “Environmental Disaster caused due to Development of Vulnerable of Hilly Areas”. Awards of ‘excellence’ in displays were also distributed in three categories, viz. Hindi, English & Regional languages.

Fairs Abroad Delegations:ITPO hosted the following during the period 2013-14: •

Delegation from Taipei Economic and Cultural Center for exploring trade opportunities in respective countries.

•

Delegation from Malaysia-India Chamber of Commerce (MAICOM), KualLampur, Malaysia to discuss mutual cooperation between ITPO and MAICOM. .

•

Meeting with the representatives of Delhi Exporters Association.

•

A five-member Delegation from Korea to discuss development in Trade Promotions between ITPO and Korea

Synergy with Associations:

Annual Report 2013-14

Bodies/EPCs/

•

A meeting with the representatives of EPCs, Trade Bodies and Govt. Deptts under the chairmanship of CMD,ITPO was held on 22.1.2014 in PragatiMaidan, New Delhi. It was the first such meeting held with EPCs, Trade Bodies and Govt. Deptts to involve them in ITPO’s overseas activities for FY 2014-15.

•

A meeting was held in December’2013 with The Southern Gujarat Chamber of Commerce by CMD, ITPO to discuss regarding participation of overseas as well as domestic fairs of 2014-15

•

During the year 2013-14 ITPO has organized national level participation in 24 overseas trade fairs including two mini India shows in Osaka, Japan.

Other fairs Stationery Fair 2013, Aahar International Food Fair, Bangaluru, 16th India International Security Expo .2013, New Delhi, Auto Ancillary Show, October 25-28, 2013, Pune, India International Leather Fair, February 1-3, 2014, Chennai, Aahar – The International Food & Hospitality Fair, New Delhi, Kosmetika’ 2014, March 25-30, 2014, Pragati Maidan, 19th edition of International Leather Goods Fair, Kolkata

Trade

Out of 24 events, 9 are in Europe, 5 in Africa/ WANA, 5 in LAC/NAFTA, 4 in Asia, 1 in CIS region

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Commodity Boards and other Development Authorities, Institutional Trade Facilitation and Public Sector Corporations

India International Printing & Packaging Fair, New Delhi

Brand India Show: 34th India Garment Fair and 24th India Home Furnishing Fair 2013 During the year, ITPO organized two exclusive Indian commodity shows in Japan- 34th India Garment Fair and 24th India Home Furnishing Fair 2013

Chapter-8

These shows for Home Furnishing and garments being organized annually for the last several years are well establish and have become major sourcing avenues for these products. The simultaneous organization of the shows for furnishing and garments during 2013 provided ample opportunity for buyers and sellers to conduct business under one roof not only in terms of home furnishing but also in Garments. These two events together generated business worth US$ 36.67 million and were attended by 2149 business visitors In 2012-13 the total area sold in India Garment Fair and India Home Furnishing Fair, Osaka (Japan) was 933 sqm with 65 participants whereas in 2013-14 the total area sold was increased to 1449 sqm with 111 participants. New Events : •

Beauty World Middle East, Dubai (UAE) (May 28-30,2013)- ITPO’s has organized India’s for the first time in an area of 117 sqm with 11 participants.

•

11th Indian Global Festival 2013,Kuala Lumpur (Malaysia) June 5-9,2013— ITPO’s participation was organized for the first time in an area of 260sqm with 31 Indian companies.

254

•

Intersec, Dubai (UAE) - ITPO has organized India’s participation in Intersec, Dubai, UAE from January 19-21, 2014 in an area of 389 sqm. 31 Indian companies participated in the show and generated business amounting to Rs. 15 crores.

Networking With Trade Promotion Organisations (TPO’s) And Other Activities ITPO has been actively participating in Asian Trade promotion Forum (ATPF), a gathering of Trade Promotion Organizations (TPOs) since very beginning. All the activities of ATPF are coordinated by Japan External Trade Organization (JETRO). Under the programme, the working-level meeting with representatives of the TPOs of the member countries and the meeting of the CEOs of the member organizations is held annually. India is a also a member of the India Convention Promotion Bureau (ICPB) and participates in the activities organized by the ICPB. ITPO also signed an MoU with Visvesvaraya Industrial Trade Centre (VITC), Karnataka for co-operation in promoting the industry and exports from the region. Trade Delegations Seventy Trade delegations visited India Trade Promotion Organisation from April 2013 till March, 2014. These included delegations from The Export Promotion Council of Kenya, the Togolese Centre for Exhibitions and Fairs of Lome, Togo, three member delegation from the Hong Kong Trade Development Council, South Africa and China which visited ITPO for exploring the opportunities for collaboration in development programmes through MoUs and for organising of exhibitions in India.

Annual Report 2013-14

Future Plans

ITPO is running a physical and electronic library in Business Information Centre (Hall No. 19), Pragati Maidan, New Delhi which is visited by trade visitors for seeking information and guidance for promotion of trade/business. As to keep the library up to date with recent information, about 107 nos. of periodicals with about 118 titles trade related and about 15 CD-ROMs were added in the Centre during 2013-14.

As per the decision taken by the Central Govt., ITPO was directed to undertake the project for redeveloping the present Pragati Maidan complex into a state-of-the art Integrated Exhibition-cum-Convention Complex to support G-to-G, G-to-B and B-to-B conventions and exhibitions.

Business Information Centre With a view to provide reliable trade information to Indian exporters and overseas buyers, ITPO has set up the Business Information Centre and Trade Portal www.tradeportalofindia.org at Pragati Maidan. ITPO is maintaining and operating a Trade Portal ‘www.tradeportalofindia.org’, which was set up by the Government of India under the EU –India Trade Investment and Development Programme for promoting trade between India and EU. This portal, besides providing information on the IndoEU countries, covers other countries and regions as well. It also offers linkages to relevant government websites that provide information access, both off-line and online, on countries, trade statistics, market surveys, sector- based information and statistics, country regulations, trade events, business directory etc. At present this portal contains information on more than 100 countries including 27 countries of EU.

Annual Report 2013-14

This project envisages development of 1,00,000 sq. mtrs. of Exhibition space in Phase I (Design Year 2020) and further capacity addition of 1,00,000 sq. mtrs. addition in Phase II (Design Year 2030) and Convention centre facilities with a plenary hall of at least with a capacity of more than 4000 pax. capacity is being envisaged with total built up area of 3,26,065 sq. mtrs. including basement of about 1,66,130 sq. mtrs. for accommodating about 4,800 PCUs. This project envisages wherein demolition of State Pavilions and Central Ministries halls shall be essentially required for implementation of the project. For implementing the project, an AMPC have been appointed. Implementation of Phase-I is planned to commence from 2014-15; where selection of Project Executor(s), planning and designing of architectural concept and consequently electrical & mechanical services and other desired state-of-the-art facilities are to be undertaken. Submission of building plans for approval from various statutory and regulatory authorities are planned during 2014-15, as also, development of systems for execution/management of this iconic project for ensuring quality & timely completion.

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Commodity Boards and other Development Authorities, Institutional Trade Facilitation and Public Sector Corporations

Trade Information Activities

Chapter-9

Programmes Undertaken for the Welfare of SCs/STs/OBCs, and Women and Persons with Disabilities

Providing opportunities of employment and skill enhancement to the Scheduled Castes/ Scheduled Tribes/ Other Backward Classes, womenand Persons with Disabilities (PwD), plays a crucial role in nurturing an economic and socially inclusive environment. The Government of India issues directions from time to time for the welfare of these sections of society. Proper implementation of these orders is vital for ensuring that the benefits are accessible to the targeted groups. The Department of Commerce actively monitors the implementation of these directions aimed at realizing the objective of inclusive growth. There is an SC/ST Cell headed by the Liaison Officer â&#x20AC;&#x201C; an officer of the level of Deputy Secretary, functioning in the Department of Commerce. The Liaison Officer ensures prompt disposal of the grievances of the employees of the SC/ ST categories and also takes care that the benefits admissible to them are properly delivered to them by the associated organizations of the Department. A statement showing total number of Government employees and the number of SC/ ST/ OBC as on 31.12.2013 in Department of Commerce (proper) and its associate organizations is shown at Annexure 9.1. The welfare activities undertaken by different organizations attached to this Department are given in the succeeding paragraphs.

256

A) Rubber Board The various schemes operated by the Rubber Board for the welfare of SC/ ST/ OBC/ PH/ Women category of growers during the year 2013-14 are as under: i)

An amount of Rs. 7.44 lakh was disbursed to 38 SC/ ST tappers employed in the unorganized sector under the housing subsidy assistance scheme.

ii) Cash Assistance was given under Rubber Plantation Development Scheme. In the traditional areas, the cash assistance was disbursed to 160 beneficiaries amounting to Rs. 2.11 lakh. A total amount of Rs. 6 crore and 68 lakh was disbursed to 17665 beneficiaries in non-traditional area and North â&#x20AC;&#x201C; eastern region. iii) A total amount of Rs. 1 crore 6 lakh was disbursed to 2988 beneficiaries as reimbursement of cost for high yielding planting material. iv) Assistance of Rs. 1 crore 70 lakh was provided to 4731 beneficiaries for boundary protection fencing material for rubber plantation. v) 18 persons were given fee concession amounting Rs. 15900/- for training in rubber cultivation, tapping, processing and manufacturing. vi) An amount of Rs. 91.37 lakhs was disbursed to 665 persons under Tribal

Annual Report 2013-14

Coffee Board

The Coffee Board has taken measures to create an enabling environment that is conducive for Scheduled Caste, Scheduled Tribes, Other Backward Classes, specially that of the women in the formulation of need based plans and programs keeping in view the welfare and development of SC/ ST/ OBC and women. C)

Indian Institute of Packaging (IIP)

Reservation is provided during admission in PGDP and recruitments to SC, ST and OBC candidates. D) Marine Products Export Development Authority (MPEDA) The MPEDA has been assisting the members of the backward communities in building their capacities for carrying out aquaculture related activities as an alternative source of their employment. Members of SC/ ST community are accorded special attention in view of their relative backwardness and lack of opportunities for self-employment. MPEDA has been implementing a program on training of members of the SC/ ST communities in the coastal states for creating awareness and building their skill and capacity in taking up aquaculture and allied activities as a means of self – employment. MPEDA organized 11 such training programs on Better Management Practices on Antibiotics in aquaculture during

Annual Report 2013-14

2013-14 (April – November). A total of 242 beneficiaries belonging to SC/ ST communities participated in these programs. The MPEDA is strictly following the reservation rules applicable in respect of the SC/ ST OBC categories. A Liaison Officer appointed in the organization looks after the welfare of the reserved categories. E) Agriculture and Processed Food Products Export Development Authority (APEDA) The welfare and development of SC/ ST/ OBCs and women employees is well looked after by the Authority. APEDA has no unresolved grievances from SC/ ST/ OBC or women employees. APEDA has formed a Committee for receiving complaints against sexual harassment against women at workplaces. The Committee also includes women officers. F)

Indian Institute of Foreign Trade (IIFT)

IIFT has emerged as a major centre of international business education by aligning its teaching, research and training capabilities with its core vision over the years and by constantly striving to create academic excellence. It has been consistently ranked amongst the top ten business schools in India. The Institute follows Government of India instructions relating to reservation. As against the total manpower of 106 employees on administrative side (both in Delhi and Kolkata), the Institute has 22, 5 and 15 employees belonging to the SC, ST and OBC categories respectively.

257

Programmes Undertaken for the Welfare of SCs/STs/OBCs, and Women and Persons with Disabilities

Development Project in traditional, non – traditional and NE Region for the benefit of tribal communities with active participation of concerned State Governments.

Relaxation of 5% marks in written test for appointment/ promotion is allowed to candidates belonging to reserved categories. In Selection Committees for direct recruitment as well as departmental promotions, representatives from SC/ ST/ OBC/ PH categories are nominated. Women are also nominated on Selection Committees. Prescribed quota in promotion is given to the members of SC/ ST/ OBC.

Chapter-9

A Committee of five officers under the Chairmanship of Dr. (Mrs.) S. Bhatia, Chairperson, with two other female officers exists for prevention and redressal of sexual harassment at workplace. As a welfare measure, women employees on administrative side were also nominated to attend training programs organized by ISTM and other organizations. Public grievance redressal mechanism under the Chairmanship of Dr. (Mrs.) S. Bhatia is in place in IIFT. G)

S tate Trading Corporation of India Limited (STC)

Two programs have been conducted on Reservation policy, one for participants belonging to SC/ ST/ OBC category and one for HR personnel dealing with the same subject. One program has been conducted specially for women employees on “Safety on Roads”. H)

inerals M and Metals Trading Corporation (MMTC) Limited

Personnel Division at Corporate Office and the Regional Offices of MMTC implement the personnel policies of the Company including

258

policies for reservations both in recruitment and promotion in respect of persons belonging to SC/ ST/ OBC and Persons with Disabilities (PWDs). In order to upgrade the business and soft skills, SC and ST employees were nominated to various In-house training programs as well as programs conducted by renowned agencies. During the period April- October, 2013, out of a total of 342 employees nominated for training, 61 employees (17.84%) belonging to SC category and 24 employees (7.01%) belonging to ST category were sponsored by the Company. Reservation in allotment of accommodation is provided to SC and ST employees to the extent of 10% for B- Type accommodation and 5% in respect of C&D - Types accommodation. MMTC has in place “Structured Meetings Scheme” in which the Management meets various representative bodies of employees periodically in order to discuss and resolve issued on service matters and welfare measures. In line with this philosophy, periodical meetings with MMTC SC/ST Welfare Associations in all offices of the company and the Federation of MMTC SC/ ST Welfare Associations are convened. Women welfare activities in MMTC are derived out of the broad guidelines of the National Policy on Women Empowerment and objectives of the Forum of Women in Public Sector (WIPS). A General Manager of MMTC, a female officer, is Secretary- Northern Region of the Forum. The welfare activities for women include creating a networking platform for women from various Public

Annual Report 2013-14

Other welfare activities include Free Health Check up for women employees. The promotion policy in MMTC ensures selection of deserving and meritorious women at every level up to and below Board Level without gender discrimination. Based upon the guidelines from Ministry of Labour, Ministry of Commerce and Industry and the order passed by the Hon’ble Supreme Court of India laying down strict guidelines to be followed in tackling sexual harassment cases of women in the workplace, a Complaint Committee at the Corporate Office as well as Regional Offices is functional in MMTC. Women employees are free to approach the Complaint Committee to register any complaint related to sexual harassment. I)

roject and Equipment Corporation of P India (PEC) Limited

Government directives / instructions with regard to SC/ ST/ OBC are duly complied with by PEC. There exists a Time Scale Promotion Scheme for Staff Cadre of PEC. Qualifying period for promotion for employees of SC and ST categories is relaxed by one year in each stage of promotion. Out of total manpower of 194 employees, 41 are female employees (as on 31.12.2012) In compliance with the directives of the Hon’ble Supreme Court, a “Complaints Committee” was constituted in PEC on 20.01.1998 for prevention and redressal of sexual harassment at the workplace

Annual Report 2013-14

I ndian Trade Promotion Organisation (ITPO)

Guidelines on reservation were complied with in ITPO. Liaison Officers have been nominated to look after the interest of SCs/ STs and OBCs. In every Departmental Promotion / Selection Committee meeting officers of appropriate level belonging to SC/ ST and minority category have been associated to look after the interests of the candidates belonging to these categories. As a measure for encouraging the children of SC/ ST officers/ Staff of ITPO, the organization has decided to organize competitions on Painting, Hindi Essay, Computer (in Hindi). A Women’s Cell has been created in ITPO to prevent sexual harassment of women at workplace and monthly reports in this regard are being sent to Department of Commerce. K)

E xport Credit Guarantee Corporation of India Ltd. (ECGC)

Reservation in direct recruitment in all the Groups “A”, “B”, “C” and “D” for Scheduled Caste, Scheduled Tribes and Other Backward Class categories is being provided as per existing guidelines on reservation. Reservation in promotion in Groups “A”, “B”, “C” and “D” is also being provided to Scheduled Castes and Scheduled Tribes categories. The Corporation has 181 women employees as on 31.12.2013 who are working in all the four Groups “A”, “B”, “C” and “D” posts. Out of these, the women employees working at the top positions include Executive Director, General Manager, four Deputy General Managers and five Assistant General Managers. There is a complaints committee

259

Programmes Undertaken for the Welfare of SCs/STs/OBCs, and Women and Persons with Disabilities

Sector Enterprises, Banks and Insurance Companies for mainstreaming their potential/ professional growth and integrating women welfare with the growth of the organization.

for prevention and redressal of complaints pertaining to sexual harassment of women employees at work place. The Committee is headed by a woman officer of the rank of Assistant General Manager. Most of the women employees in the Corporation are members of the Women in Public Sector (WIPS). Furthermore, due consideration is given to women’s problems and the same are taken into account at the time of annual transfers. Couples working in the Corporation are posted at the same place, to the extent possible.

Chapter-9

Welfare of Persons with Disabilities The persons with disabilities have a huge potential to contribute towards the growth of the nation. The Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 acknowledges this fact and aims at giving them their right to live an honorable and dignified life by generating awareness towards the special needs of the disabled people. The Act stipulates 3% reservation in the posts under the Government be provided for Persons with Disabilities (PWDs) - reserving 1% of the posts for persons suffering from each disability i.e. (i) blindness and low vision (VH), (ii) hearing impairment (HH), (iii) locomotor disability or cerebral palsy (OH). It also provides for review of the list of identified posts in Group A, B, C and D to be reserved for the PWDs in Government employment, after every three years. The technological advancements of the modern times show promising possibilities of identifying more jobs for the disabled persons.

260

There are guidelines for providing facilities to the disabled persons who are already employed in Government for efficient performance of their duties. Adapting the infrastructure of the workplaces to create a disabled-friendly environment encourages participation of the persons with disabilities. Recently, the Hon’ble Supreme Court in its judgment dated 8th October 2013 in the matter of Civil Appeal No. 9096 of 2003 arising out of SLP No. 7541 of 2009 titled Union of India & Anr. Vs National Federation of the Blind and Others regarding computation of reservation for Persons with Disabilities has, inter alia held: “Thus, after thoughtful consideration, we are of the view that the computation of reservation for persons with disabilities has to be computed in case of Groups “A” “B” “C” and “D” posts in an identical manner viz., ‘computing 3% reservation on total number of vacancies in the cadre strength’ which is the intention of the legislature.” Keeping in view the above judgment, the organizations under Department of Commerce have been instructed to strictly comply with the directions of the Hon’ble Supreme Court. The measures taken for the welfare of the PWDs are given in the succeeding paragraphs. A statement showing the total number of Government employees and the number of PWDs in different categories as on 31.12.2013 in Department of Commerce (proper), its attached and sub-ordinate offices, autonomous bodies, PSUs and Commodity Boards under its administrative control is given in Annexure 9.2.

Annual Report 2013-14

Coffee Board

B) Agriculture and Processed Food Products Export Development Authority (APEDA) APEDA has taken care of the welfare of Persons with Disabilities. APEDA has provided motorized wheel chair to differently - able employees to move within the office. Further all the facilities as per rule are given to them. C) Minerals and Metals Trading Corporation (MMTC) Limited In order to have easy access to office premises, ramp has been provided for physically challenged employees. Employee with disability of lower limbs has been provided wheel chair for easy mobility within the office premises. PWD employees are posted to positions which are suitable considering their disability, to enable them to attend their job without difficulty. PWD officers belonging to All India Cadre are generally not transferred. Office buildings of MMTC are provided with lifts which have auditory signals announcing the floor destination and also floor requisition buttons in Braille Symbols. Taps and toilets have been adapted for use of persons with disabilities.

Annual Report 2013-14

roject and Equipment Corporation of P India (PEC) Limited

The recruitment of differently-able persons is made based on the instructions issued by the Government from time to time. For Groups “B” and “C” posts, the promotion policy is time-bound wherein a relaxation of one year at all levels in the number of qualifying years of service is provided to the employees with disability vis-à-vis general category employees in PEC. E)

I ndian Trade Promotion Organisation (ITPO)

The provisions contained in Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act 1995 regarding reservation in posts/ services for disabled person have been complied with. Aids and appliances were provided to 745 differently- able persons through Government of NCT of Delhi under Corporate Social Responsibility initiative of the organization. F)

E xport Credit Guarantee Corporation of India Ltd. (ECGC)

Horizontal reservation for PWD in direct recruitment in all the Groups “A”, “B”, “C” and “D” and in Groups “C” and “D” in promotion posts is being provided to the Persons with Disabilities. Due consideration is also given to the needs of the PWD employees while posting them. Special conveyance allowance is paid to PWD employees at the rate of 2.5% of their basic pay, subject to a maximum of Rs. 400/- per month.

261

Programmes Undertaken for the Welfare of SCs/STs/OBCs, and Women and Persons with Disabilities

The Coffee Board has taken considerable welfare measures by providing sufficient/ adequate flexibility at the work place, keeping in view the “Welfare and Development of Persons with Disabilities”.

ANNEXURE-9.1

Statement showing total number of employees and employees of SC, ST and OBC categories as on 31st December 2013 in Department of Commerce, its Attached/ Sub-ordinate Offices and Public Sector Undertakings, Autonomous Bodies etc. under its administrative control Group

Chapter-9

Organisation

Total no. of No. of SC % of SC No. of ST % of ST No. of % of OBC Employees Emp. Emp. with Emp. Emp. with OBC Emp. Emp. with (as on 31st respect to respect to respect to December, (3) (3) (3) 2013)

(1)

(2)

(3)

(4)

(5)

D/o Commerce, New Delhi

Group A

123

12.19

4.87

Group B

170

14.11

Group C

172

32.55

Group D Upgraded as Group (erstwhile) “C” Multi Tasking Staff (MTS) Office of DGFT, New Delhi

DGS&D

CSEZ, Cochin

262

(7)

(8)

(9)

(10)

4.06

21.13

6.47

13.52

34.11

10.46

8.13

51.16

Group A

137

13.13

8.75

7.29

29.19

Group B

434

14.51

9.90

4.37

28.80

Group C

601

130

21.63

5.65

5.15

32.44

Group D

371

137

36.92

8.62

3.23

48.78

Group A

50.00

Group B

20.00

8.00

28.00

Group C

23.81

3.17

1.58

28.57

Group D U p g ra d e d as Group C - MTS DGCI&S, Kolkata

(6)

Total % of SC, ST and OBC Emp. with respect to (3)

Group A

20.83

4.17

8.33

33.33

Group B

178

22.47

8.43

30.89

Group C

164

26.21

4.87

35.97

Group D

Group A

Nil

Group B

7.14

3.57

10.71

21.42

Group C

25.80

3.22

29.03

58.06

Group D

Nil

Annual Report 2013-14

MEPZ SEZ, Chennai

50.00

Group B

5.00

53.33

58.33

Group C

48.57

28.57

77.14

Group D After implementation of 6th Pay Commission, all Group “D” posts have been upgraded to Group “C” posts. KASEZ, Kandla

VSEZ, Vishakhapatnam

FALTA SEZ, Kolkata

SEEPZ SEZ, Mumbai

Indore SEZ, Indore

NOIDA SEZ, NOIDA

Group A

Group B

25.00

12.50

37.50

Group C

9.52

7.14

9.52

26.19

Group D

36.36

13.63

20.45

70.45

Group A

Nil

Group B

12.50

Nil

12.50

Group C

9.09

3.03

6.06

18.18

Group D

44.44

11.11

44.44

100.00

Group A

Group B

14.28

2.85

20.00

Group C

41.67

Group D

Group A

Group B

12.50

18.75

12.50

43.75

Group C

22.72

5.68

23.86

52.27

Group D

Nil

Group A

Group B

11.76

23.52

11.76

47.05

Group C

Nil

Group D

Nil

Group A

Group B

10.00

Group C

33.33

14.28

9.52

57.14

Group D

26.08

4.34

26.08

56.52

3014

658

21.84

216

7.29

236

7.83

36.82

Total

Annual Report 2013-14

263

Programmes Undertaken for the Welfare of SCs/STs/OBCs, and Women and Persons with Disabilities

Group A

Autonomous Bodies under Department of Commerce Coffee Board, Bangalore

Group A

17.04

6.81

12.50

36.36

Group B

182

17.58

4.39

12.63

34.61

Group C

638

116

18.18

5.95

10.81

34.95

Group A

10.64

5.32

21.27

37.23

Group B

141

14.18

5.67

29.08

48.93

Group C

212

16.51

6.6

33.96

57.07

Group D

Group A

362

11.32

4.41

18.78

34.53

Group B

714

12.32

5.32

113

15.82

33.47

Group C

732

108

14.75

8.74

211

28.82

52.32

Group D

Group A

18.18

6.06

4.04

28.28

Group B

131

18.32

5.34

18.32

41.98

Group C

434

17.74

4.14

22.11

44.00

Group D

Group A

16.25

5.00

20.00

41.25

Group B

191

20.41

3.14

18.32

41.88

Group C

199

9.54

1.50

9.54

20.60

Group D

166

21.08

10.84

3.62

35.54

Group A

8.57

2.85

17.14

28.57

Group B

Group C

8.51

2.12

19.14

29.78

Group D

Group A

15.38

8.97

35.89

62.82

Group B

112

20.53

5.35

32.14

58.03

Group C

103

15.53

6.79

33.98

56.31

Group D

23.52

11.76

27.45

62.74

Group D Spices Board, Cochin

Chapter-9

Rubber Board, Kottayam

Tobacco Board, Guntur

Tea Board, Kolkata

Indian Institute of Packaging, Mumbai

MPEDA, Cochin

264

Annual Report 2013-14

APEDA, New Delhi

EIC of India, New Delhi

20.83

8.33

4.17

33.33

Group B

16.12

3.22

9.67

29.03

Group C

14.81

11.11

14.81

40.74

Group D

12.50

25.00

37.50

Group A

3.27

4.91

8.19

Group B

18.03

8.19

11.47

37.70

Group C

31.25

15.62

46.87

Group D

Group A

17.70

4.17

11.45

33.33

Group B

15.78

7.89

15.78

39.47

Group C

233

11.15

1.71

8.15

21.03

Group D

50.00

16.67

33.33

100.00

5520

856

15.50

312

5.65

1023

18.53

39.69

Total

Public Sector Undertakings under Department of Commerce STC Ltd., New Delhi

MMTC Ltd., New Delhi (*data as on 31.10.2013)

ITPO, New Delhi

PEC Ltd., New Delhi

Group A

547

124

22.66

5.30

7.49

35.46

Group B

126

11.90

7.14

8.73

27.77

Group C

131

43.51

11.45

4.58

59.54

Group D

Group A

590

116

19.66

6.77

5.59

32.03

Group B

652

133

20.39

10.42

30.82

Group C

118

18.64

5.93

2.54

27.11

Group D

207

31.88

7.72

2.41

42.02

Group A

165

23.63

6.06

4.24

33.93

Group B

11.49

5.74

17.24

Group C

307

18.24

1.95

5.86

26.05

Group D

398

142

35.67

0.75

2.26

38.69

Group A

167

17.96

2.99

12.57

33.53

Group B

40.00

6.66

46.66

Group C

41.66

8.33

58.33

Group D

Annual Report 2013-14

265

Programmes Undertaken for the Welfare of SCs/STs/OBCs, and Women and Persons with Disabilities

IIFT, New Delhi & Kolkata

Group A

209

15.31

3.82

9.09

28.22

Group B

349

14.61

6.59

16.33

37.53

Group C

40.00

11.42

2.85

54.28

Group D

33.33

Total

4127

922

22.34

250

6.05

232

5.62

34.01

GRAND TOTAL

12661

2436

19.25

778

6.15

1491

11.77

37.17

Chapter-9

ECGC of India Ltd., Mumbai

266

Annual Report 2013-14

ANNEXURE-9.2

Group Organisation

Total no. of No. of VH % of VH No. of OH % of OH No. of HH % of HH Employees Emp. Emp. with Emp. Emp. with Emp. Emp. with (as on 31st respect to respect to respect to December, (3) (3) (3) 2013) (3)

(4)

(5)

(6)

(1)

(2)

D/o Commerce, New Delhi

Group A

123

Group B

170

1.17

Group C

172

1.74

0.58

2.32

Group D Upgraded as Group (erstwhile) “C” Multi Tasking Staff (MTS) Office of DGFT, New Delhi

DGS&D

DGCI&S, Kolkata

CSEZ, Cochin

(7)

(8)

(9)

Total % of Disabled Employees with respect to (3)

(10)

Group A

137

1.45

Group B

434

0.23

0.69

0.23

1.15

Group C

601

0.33

1.66

0.33

2.32

Group D

371

0.53

Group A

Group B

Group C

1.58

Group D

Group A

Group B

178

1.68

Group C

164

0.60

1.21

1.82

Group D

Group A

Nil

Group B

3.57

Nil

3.57

Group C

6.45

Nil

6.45

Group D

Nil

Annual Report 2013-14

267

Programmes Undertaken for the Welfare of SCs/STs/OBCs, and Women and Persons with Disabilities

Statement showing total number of employees and employees of Persons with Disabilities (PWDs) category as on 31st December 2013 in Department of Commerce, its Attached/ Sub-ordinate Offices and Public Sector Undertakings, Autonomous Bodies etc. under its administrative control

MEPZ SEZ, Chennai

Group A

Group B

Group C

Group D After implementation of the Sixth Pay Commission, all Group D posts have been upgraded to Group C posts. KASEZ, Kandla

Chapter-9

VSEZ, Vishakhapatnam

FALTA SEZ, Kolkata

SEEPZ SEZ, Mumbai

Indore SEZ, Indore

NOIDA SEZ, NOIDA

Total

268

Group A

Group B

Group C

2.38

Group D

Group A

Group B

Group C

Group D

Group A

Group B

Group C

8.33

Group D

Nil

Group A

Group B

Group C

Group D

Nil

Group A

Group B

Group C

Nil

Group D

Nil

Group A

Group B

Group C

Group D

3014

0.19

1.02

0.13

1.36

Annual Report 2013-14

Autonomous Bodies under Department of Commerce Coffee Board, Bangalore

Rubber Board, Kottayam

Tobacco Board, Guntur

Tea Board, Kolkata

Indian Institute of Packaging, Mumbai

MPEDA, Cochin

2.72

Group B

182

0.54

Group C

638

0.94

Group D

Group A

Nil

Group B

141

Nil

1.41

Nil

1.41

Group C

212

0.47

Nil

0.47

Group D

Group A

362

0.27

Group B

714

0.14

0.84

0.28

1.26

Group C

732

0.27

1.63

0.13

2.04

Group D

Group A

Group B

131

2.29

Group C

434

0.46

2.76

3.22

Group D

Group A

Group B

191

Group C

199

1.50

Group D

166

Group A

Group B

Group C

2.12

Group D

Group A

Group B

112

Group C

103

0.97

Group D

Annual Report 2013-14

269

Programmes Undertaken for the Welfare of SCs/STs/OBCs, and Women and Persons with Disabilities

Spices Board, Cochin

Group A

APEDA, New Delhi

IIFT, New Delhi and Kolkata

EIC of India, New Delhi

Group A

4.16

Group B

Group C

3.70

Group D

Group A

3.27

Group B

Group C

3.12

Group D

Group A

1.04

Group B

5.26

Group C

233

0.42

Group D

5.56

5520

0.11

1.06

0.07

1.25

Chapter-9

Total

Public Sector Undertakings under Department of Commerce STC Ltd., New Delhi

MMTC Ltd., New Delhi * (*data as on 31.10.2013)

ITPO, New Delhi

PEC Ltd., New Delhi

270

Group A

547

0.18

1.46

0.36

2.01

Group B

126

1.58

3.17

Group C

131

1.52

0.76

2.29

Group D

Group A

590

0.16

1.52

0.50

2.20

Group B

652

0.61

1.99

2.60

Group C

118

2.54

Group D

207

Group A

165

0.60

1.21

Group B

Group C

307

1.30

0.32

1.62

Group D

398

0.50

0.75

0.25

1.50

Group A

167

0.59

1.19

1.79

Group B

6.66

Group C

Group D

Annual Report 2013-14

ECGC of India Ltd., Mumbai

209

0.47

Group B

349

0.85

1.14

0.57

2.57

Group C

2.85

5.71

Group D

8.33

Total

4127

0.38

1.31

0.26

1.96

GRAND TOTAL

12661

0.23

144

1.13

0.15

1.51

Annual Report 2013-14

271

Programmes Undertaken for the Welfare of SCs/STs/OBCs, and Women and Persons with Disabilities

Group A

10 I.

Citizen Charter, Public Grievances, RTI, Official Language and other activities

CITIZEN CHARTER

manner.

Chapter-10

Mission: To double India's exports of goods and services by the end of 12th Five Year Plan period, over the level achieved at the end of the 11th Five year Plan period. The long term objective is doubling India's Share in Global trade by end of 2020 through adoption of appropriate strategies. Values: Committed to act with integrity and judiciousness, transparency and accountability and with courtesy and understanding in our dealings with the trade and the public. All the services and commitments to be delivered to citizens in most effective and efficient S. No.

Services/Transaction

Commitment: Continuously strive to evolve procedures in foreign trade policy that would be of maximum benefit to the public. Committed to simplify various requirements necessary under rules in force, in the context of a globalized and liberalized economy. Continuously consult our client groups and give timely publicity to all changes in law or procedures relevant to the Department. The following standards of Services have been provided under the Citizen Charter of Department of Commerce:Maximum Time Limit

Approval for grant of financial assistance i) Approval of Action Plan : By 30th April of the Financial Year. funds under MDA scheme. ii) Release of Funds: Within 60 days of allocation of Budget.

Approval for grant of financial assistance 5 Months under MAI scheme.

Approval for grant of financial assistance 3 Months* in respect of projects under Central (*Subject to availability of complete documents and availability component of ASIDE, and release of of funds). ASIDE Fund (Central).

Approval for setting up of SEZ.

i) Placement of cases before the Board of Approval (BOA) within 60 days of receipt of State Governmentâ&#x20AC;&#x2122;s recommendations and complete documents. ii) Issues of approval letter within 20 days of BOA approval, subject to security clearance.

II. PUBLIC GRIEVANCES Public Grievance Cell deals with problems of staff of Department and offices under its

272

control for speedy redressal. A Grievance Box has also been provided at the Information and Facilitation Counter situated at Gate No.14,

Annual Report 2013-14

Udyog Bhavan, New Delhi. All Thursdays are observed as meeting less days in the Department and officers make themselves available to the public without insisting upon prior appointment.

•

compiling quarterly statistical reports of vigilance cases for sending a consolidated quarterly report to the Department of Personnel

•

work relating to granting permission under the provision of the Conduct Rules

Appellate Committee Cell

Vigilance Division also handles the following activities:•

conducting regular and surprise inspections of sensitive offices

•

review and streamlining of procedures, which appear to afford scope for corruption or misconduct and for initiating other measures for the prevention, detection of corruption and other malpractices and punishment to the corrupt in the Department as well as its attached and subordinate offices and Public Sector Undertakings

•

keeping a watch on the movement/ visits of Undesirable persons in the Department

•

preparation of a list of officers of “Doubtful Integrity” /Agreed list and their postings to non sensitive areas.

Details of the appeals disposed during the year 2013 are as under:Appeals Appeals Total Appeals Appeals pending admitted appeals disposed pending as on during for 01.01.13 the year disposal 5

III. Vigilance Unit The Vigilance Section in the Department with the Joint Secretary & Chief Vigilance Officer (JS&CVO) as the Divisional head deals with the following work:•

implementation of Conduct rules

•

processing of annual property returns

•

completion of Performance Appraisal Reports of all the officers of the Department

•

furnishing of CVO’s monthly report on vigilance activities to CVC

Annual Report 2013-14

The Vigilance Section of the Department also deals with the disciplinary cases of Indian Trade Service officers and Board level appointees working in various Public Sector Undertakings, Autonomous Bodies and Commodity Boards functioning under the administrative control of the Department, while the cases of non Board level appointees of the various PSUs, Autonomous Bodies and Commodity Boards are looked after by the respective CVO/Heads of the Organisation.

273

Citizen Charter, Public Grievances, RTI, Official Language and other activities

An Appellate Committee has been constituted in the Department under section 15(1) of the FT (Development & Regulation) Act 1992.As per the citizen charter the Appellate Committee is to dispose the appeals admitted under FT (D&R) Act within 3(three) months subject to receipt of complete details/documents from the appellant and respondents. The committee has been fulfilling the said commitment.

Chapter-10

The complaints received from individuals and other organizations like CBI/CVC/ PMO etc. are examined on the basis of the factual report obtained from the concerned administrative divisions/organizations. If necessary, preliminary inquiries are made to look into the merit of the complaint. If the complaints have any substance then a regular departmental action is initiated. During the year 2013-14 (April’13-October’ 13), about 140 (approx.) investigations/ inquiries were conducted and on the basis of these inquiry proceedings, in 17 (approx.) cases major/minor penalties were imposed in attached and subordinate offices, PSUs, Autonomous Bodies and Commodity Boards and the Department of Commerce. 5. Vigilance Awareness Period was observed during the period 28th October, 2013 to 2nd November, 2013 to create awareness amongst officers and staff.

IV.

Right to Information

The Department of Commerce (DoC) has implemented the Right to Information Act, 2005 and has put in place all necessary systems and procedures on the website of the Department. At present, there are 38 Central Public Information Officers (CPIOs) of Directors/Deputy Secretaries level in the Department and 16 First Appellate Authorities (F.A.A.s), who are Additional Secretary/Joint Secretary level officers to hear and dispose of first appeal(s) filed under the RTI Act. Besides, there are 31 Public Authorities (P.A.s) under the jurisdiction of DoC. All these P.A.s have their own CPIOs and F.A.A.s for implementation of the provisions of the RTI Act.

274

During the year April, 2012 to March, 2013, 836 RTI applications were disposed of by different CPIOs/Appellate Authorities of this Department and 286 RTI applications were transferred to other Public Authorities. During the same period, 50 appeals were also disposed of as per provisions of the RTI Act. During the period from April, 2013 to March, 2014, 977 RTI applications were disposed of by different CPIOs/Appellate Authorities of this Department and 639 applications were transferred to other Public Authorities. During the same period, 80 appeals were also disposed of as per provisions of the RTI Act.

Official Language Division

The official language division monitors the progressive use of Hindi and implements the official language policy in the official work of the department. Necessary action has been taken to achieve the targets set out in the Annual Programme for the year 2013-14. Hindi Salahakar Samiti The Department has a Hindi Salahakar Samiti to review the progressive use of Hindi in the official work of the Department as well as various organizations under its administrative control. Hon’ble Minister of State for Commerce & Industry presides in the meetings and thereafter detailed instructions are issued to implement the decisions taken therein. Official Language Committee

Implementation

Meetings of the Official Language Implementation Committee (OLIC) were

Annual Report 2013-14

organised under the Chairmanship of Joint Secretary (O.L) wherein progressive use of Official Language in official work of various Sections/Divisions of the Department was reviewed. Apart from this targets set by the Department of official Language were also discussed.

Under the “Annual special incentive scheme“ operated during the year to encourage the officers/employees to do their optimum official work in Hindi, a cash award of Rs. 5000/- each has been initiated in the Deptt. of Commerce. Under this scheme a provision has been made to provide a total number of 44 prizes (22 prizes for Hindi speaking employees and 22 prizes for non- Hindi speaking employees)

•

The status of various organizations under the Department of Commerce in which 80% or more employees have acquired working knowledge of Hindi for doing their official work is being reviewed regularly.

•

During the year 2 sub regional offices of MPEDA have been notified in the Gazette of India under Rule 10 (4) of the Official Language Rules, 1976. Apart from this, 15 sections in the Department have already been specified under rule 8(4) of the Official Language Rules, 1976 for doing their entire official work in Hindi.

Hindi workshops and Hindi Fortnight Hindi workshops are organized in Department on regular basis. The topics discussed in these workshops are Official Language Policy & Official Language Act ; Hindi noting and drafting, official and administrative terminology, How to fill Questionnaires for parliamentary committee’s inspection and Quarterly Reports etc. Hindi Fortnight was organized in the Department during 2-16 September 2013. Six competitions viz. Essay writing in Hindi, Noting and Drafting in Hindi, Dictation in Hindi, picture description, extempore speech in Hindi and Raj bhasha and General Knowledge. In a function organized on 1710-2013, Ms. Anita Agnihotri AS&FA of Department of Commerce gave away the cash prizes and certificates to the winners. Incentive Schemes To enhance the use of Hindi in their official work by the staff, the following incentive schemes have been introduced in the Department:

Annual Report 2013-14

Rajbhasha Shield Yojna for Attached/ Subordinate offices. This incentive scheme is being implemented in the department for its attached/ subordinate offices for many years. Under this scheme, shield/ trophies are awarded to the offices for their performance in the field of official language. Their performances are evaluated by a committee on the basis of the prescribed performa and relevant documents submitted by them.

275

Citizen Charter, Public Grievances, RTI, Official Language and other activities

There is improvement in the use of Hindi Correspondence as compared to previous year. Letters received in Hindi are replied to in Hindi. The percentage of outgoing Letters in Hindi is increasing.

•

Chapter-10

Inspections The Department ensures compliance of Section 3(3) of the Official Language Act wherein all papers/documents are issued bilingually (Hindi & English). In compliance of Rule 5 of the Official Language Rules, letters received in Hindi are invariably replied to in Hindi. Letters received from the offices located in Region ‘A’, ‘B’ and ‘C’ are also replied to in Hindi. The progress made in promoting the use of Hindi in the organizations under the control of the Department is monitored and reviewed through their Quarterly Progress Reports and through inspections. Official Language inspections of 10 attached offices of Deptt. of Commerce were carried out during the year 2013 and the inspections of sections of the Department of Commerce were also carried out by the officials of Hindi Division to review the position of progressive use of Hindi in their official work. Committee Language

Parliament

Official

During the year, 2013-14 the committee of Parliament on Official Language inspected following 10 organizations under DOC wherein a representative of the Department were present. These are ECGC Ltd., Delhi, Rubber Board, Regional office, Pallakkad, Spice Board, Munnar, MMTC Ltd., Kocchi, PEC Ltd., New Delhi, DGS&D New Delhi, MMTC, Regional office, Hyderabad, MPEDA Regional office, Vijaywada, ECGC Ltd., Pune and Office of Deputy Commissioner of Rubber production, Agartala.

276

VI. Commercial Wings/Indian Missions/ Posts abroad There are 65 formal Commercial Wings functioning in the Indian Missions/Posts abroad, which are funded from the budget of the Department of Commerce. These Commercial Offices, working as units, are attached to the Indian Missions. These include the Permanent Mission of India to the World Trade Organization, Geneva and our Mission in Brussels. In addition, 41 other Indian Missions have also been provided with commercial budget either to employ local Marketing Assistants for undertaking commercial and economic activities or to carry out trade promotional activities. The Commercial Wings of our Missions abroad serve as an extension of the Department of Commerce in performing various tasks relating to India’s trade with the concerned host country, it involves: •

Information and marketing intelligence which would, inter-alia, include collection and transmission of trade, economic and investment information; monitoring of economic, commercial and trade policy developments; monitoring of bilateral economic and commercial relations, both at the Government-level as well as at the level of business communities of the two countries; market research, surveys and critical analysis of ongoing trade;

•

Trade and investment promotion which would, inter-alia, include handling trade and investment enquiries, promotion

Annual Report 2013-14

of merchandise trade, promotion of investment and joint ventures and assistance in resolution of trade disputes; •

In order to strengthen these Commercial Wings and increase their activities, budgetary allocation for these offices has been augmented. The Budget Estimates (BE) for the year 2013-14 was Rs. 121.35 crores and was increased to Rs.132.24 crores at RE stage. The allocated funds were utilized fully.

Annual Report 2013-14

Results-Framework Document (RFD) provides a summary of the most important results of the Department of Commerce expects to achieve during the financial year. This document has two main purposes: (a) move the focus of the department from processorientation to results-orientation and (b) provide an objective and fair basis to evaluate department’s overall performance at the end of the year. The RFD seeks to address three basic issues: (a) The department’s main objectives for the year. (b) Actions proposed to achieve these objectives. (c) Progress made in implementing these actions and the relevant success indicators. Detailed RFD of the Department of Commerce is available at the website : www.commerce. nic.in.

277

Citizen Charter, Public Grievances, RTI, Official Language and other activities

Trade and economic discussions which would, inter-alia, include follow-up on the bilateral economic and commercial relationship, promotion of project exports and services, brand/market promotion, analysis of emerging trends relating to multilateral and regional institutions with a focus on India’s trade and investment etc.

VII. Results- Framework Document (RFD) for 2013-14.

Appendix-I

Trade Data Table 3.1 Export of Principal Commodities

(Values in US$ Millions, Growth and Share in percentage)

Commodity

Apr-Mar 2012

PLANTATION

Apr-Mar 2013

Apr-Mar 2014(P)

%Growth

%Share

1,800.50

1,732.10

1,590.50

-8.17

0.51

01) Tea

847.63

865.97

792.01

-8.54

0.25

02) Coffee

952.87

866.13

798.49

-7.81

0.26

AGRI & ALLIED PRDTS

27,427.04

32,017.27

32,277.59

0.81

10.33

01) Cereal

6,270.39

9,655.41

10,504.12

8.79

3.36

Rice

4,940.36

6,216.01

7,741.70

24.54

2.48

Wheat

202.07

1,934.24

1,565.71

-19.05

0.5

Others

1,127.95

1,505.16

1,196.72

-20.49

0.38

02) Pulses

227.58

235.46

288.32

22.45

0.09

03) Tobacco

833.42

924.14

1,011.23

9.42

0.32

Unmanufactured

602.8

701.44

789.02

12.49

0.25

Manufactured

230.61

222.69

222.21

-0.22

0.07

04) Spices

2,750.04

2,820.65

2,636.95

-6.51

0.84

05) Nuts & Seeds

2,598.65

2,044.49

1,989.10

-2.71

0.64

Cashew incl CSNL

927.64

752.47

848.71

12.79

0.27

Sesame & Niger seed

577.96

544.63

610.83

12.15

0.2

Ground nut

1,093.05

747.39

529.56

-29.15

0.17

06) Oil Meals

2,420.46

3,038.60

2,790.19

-8.18

0.89

07) Guergum Meal

3,354.82

3,919.23

1,979.41

-49.49

0.63

08) Castor Oil

971.85

792.75

725.68

-8.46

0.23

09) Shellac

53.09

73.84

83.37

12.91

0.03

10) Sugar & Mollasses

1,881.34

1,615.50

1,193.20

-26.14

0.38

11) Processed Foods

2,550.10

2,756.28

3,407.93

23.64

1.09

1,129.57

1,213.02

1,569.00

29.35

0.5

60.03

63.7

66.57

4.51

0.02

1,360.49

1,479.56

1,772.36

19.79

0.57

Fresh Fruits & Vegetables

Fruits/Vgetable seeds

Processed & misc processed items

278

Annual Report 2013-14

Commodity

Apr-Mar 2012

12) Meat & Preparations

13) Poultry & Dairy Products

14) Flouriculture Products

15) Spirit & Beverages

MARINE PRODUCTS

Apr-Mar 2013

Apr-Mar 2014(P)

%Growth

%Share

2,921.42

3,291.98

4,481.20

36.12

1.43

208.8

410.52

704.77

71.68

0.23

76.5

77.79

75.31

-3.2

0.02

308.56

360.63

406.8

12.8

0.13

3,443.63

3,464.08

5,014.73

44.76

1.6

D) ORES & MINERALS

8,405.43

5,631.33

5,604.22

-0.48

1.79

01) Iron ore

4,597.32

1,661.45

1,570.83

-5.45

0.5

02) Mica

49.78

50.69

50.4

-0.57

0.02

03) Processed Minerals

1,803.24

2,064.09

2,100.35

1.76

0.67

04) Other ores & minerals

1,834.91

1,695.68

1,722.57

1.59

0.55

05) Coal

120.18

159.43

160.07

0.4

0.05

LEATHER & MNFRS

4,803.23

4,882.35

5,687.63

16.49

1.82

01) Footwear

2,114.84

2,046.70

2,463.20

20.35

0.79

02) Leather & mfrs

2,688.39

2,835.66

3,224.43

13.71

1.03

GEMS & JEWELLERY

44,887.70

43,344.85

41,100.13

-5.18

13.15

210.34

206.62

236.44

14.44

0.08

G) SPORTS GOODS H)

CHEMICALS & RELATED PRODUCTS

39,364.86

41,504.68

43,755.48

5.42

01) Basic chemls, Pharma & cosmetics

24,450.74

26,291.84

27,501.78

4.6

8.8

02) Plastics & Linoleum

6,259.02

6,199.98

6,749.96

8.87

2.16

03) Rubber, glass & other products

7,054.03

7,508.25

7,830.47

4.29

2.5

04) Residual chemls & allied products

1,601.07

1,504.62

1,673.28

11.21

0.54

I) ENGINEERING GOODS

58,553.84

56,796.94

61,623.50

8.5

19.71

36,056.45

34,086.89

37,958.59

11.36

12.14

363.6

398.91

336.01

-15.77

0.11

01) Machinery

Machine tools

Machinery & Instruments

14,285.09

15,303.74

16,211.25

5.93

5.19

Transport equipments

21,407.76

18,384.24

21,411.33

16.47

6.85

6,592.02

6,232.25

7,477.11

19.97

2.39

02) Iron & Steel

Iron & Steel Bar rod etc

1,416.89

1,135.84

1,159.98

2.13

0.37

Primary & semi-finished iron & steel

5,175.13

5,096.41

6,317.12

23.95

2.02

15,905.37

16,477.79

16,187.80

-1.76

5.18

03) Other Engineering Items

Annual Report 2013-14

279

Commodity

Apr-Mar 2012

Ferro Alloys

Aluminium products

Apr-Mar 2013

Apr-Mar 2014(P)

%Growth

%Share

1,754.91

1,862.52

1,734.49

-6.87

0.55

681.38

675.63

868.89

28.6

0.28

Non ferrous metals

3,628.14

3,542.59

3,475.09

-1.91

1.11

Manufacture of metals

9,534.50

10,045.48

9,677.66

-3.66

3.1

Residual Engineering items

306.45

351.57

431.68

22.79

0.14

J) ELECTRONIC GOODS

9,365.08

8,442.77

7,690.68

-8.91

2.46

01) Electronics

8,848.00

8,052.90

7,622.76

-5.34

2.44

02) Computer Software in physical form

517.09

389.87

67.93

-82.58

0.02

PROJECT GOODS

83.23

145.97

39.65

-72.84

0.01

L) TEXTILES

27,207.58

26,362.39

30,379.55

15.24

9.72

01) Readymade garments

13,711.25

12,928.17

14,935.97

15.53

4.78

02) Cotton, yarn, fabrics, made-ups etc

6,811.35

7,524.56

8,886.91

18.11

2.84

03) Manmade textiles & made-ups etc

5,658.01

5,045.70

5,693.89

12.85

1.82

04) Natural Silk textiles

198.85

155.35

141.45

-8.95

0.05

05) Wool & woolen mfrs

151.25

121.97

113.24

-7.15

0.04

06) Coir & coir mfrs

211.92

196.39

229.56

16.89

0.07

07) Jute mfrs

464.95

390.25

378.53

-3

0.12

M) HANDICRAFTS

279.95

203.76

277.13

36.01

0.09

CARPETS

847.54

988.14

1,037.11

4.96

0.33

01) Hand-made excl silk

843.37

984.22

1,034.55

5.11

0.33

02) Mill-made excl silk

03) Silk carpets

COTTON RAW INCL WASTE

P) Q)

other

than

4.17

3.92

2.57

-34.53

4,327.93

3,747.73

3,622.89

-3.33

1.16

PETROLEUM PRODUCTS

56,038.54

60,859.81

62,685.29

20.05

UNCLASSIFIED EXPORTS

18,917.50

10,069.88

9,987.77

-0.82

3.19

305,963.92

300,400.68

312,610.29

4.06

100

Total Data Source: DGCIS, Kolkata

280

Annual Report 2013-14

Table 3.2 Export to Principal Regions and Countries

(Values in US $ Million, Growth and Share in percentage) Region/Countries

Apr-Mar 2012

Apr-Mar 2013

Apr-Mar 2014(P)

%Growth

%Share

1) Europe

57798.24

56,050.47

58,304.10

4.02

18.65

52603.1

50,469.37

51,594.79

2.23

16.5

1.1 EU Countries

8628.12

8,649.24

9,822.22

13.56

3.14

NETHERLAND

9152.61

10,566.46

7,991.91

-24.37

2.56

GERMANY

7946.21

7,253.38

7,507.66

3.51

2.4

BELGIUM

7161.16

5,507.32

6,353.74

15.37

2.03

ITALY

4885.38

4,373.20

5,267.03

20.44

1.68

FRANCE

4558.33

4,986.64

5,116.27

2.6

1.64

SPAIN

2999.7

2,865.90

2,883.74

0.62

0.92

POLAND

787

810.91

992.92

22.45

0.32

DENMARK

757.51

707.29

761.7

7.69

0.24

10)

SWEDEN

825

686.15

732.14

6.7

0.23

11)

PORTUGAL

525.27

528.46

626.8

18.61

0.2

12)

FINLAND

314.49

317.47

415.76

30.96

0.13

13)

IRELAND

380.63

387.12

414.14

6.98

0.13

14)

CZECH REPUBLIC

271.85

251.4

387.78

54.24

0.12

15)

HUNGARY

316

323.74

344.79

6.5

0.11

16)

AUSTRIA

341.84

328.71

342.27

4.12

0.11

17)

GREECE

790.06

300.13

335.01

11.62

0.11

18)

ROMANIA

269.54

283.15

286.1

1.04

0.09

19)

SLOVENIA

227.02

273.91

211.91

-22.63

0.07

20)

MALTA

848.99

398.22

167.9

-57.84

0.05

21)

BULGARIA

108.78

156.98

169.17

7.77

0.05

22)

LITHUANIA

134.89

147.43

104.88

-28.86

0.03

23)

SLOVAK REP

94.36

107.01

104.42

-2.42

0.03

24)

LATVIA

96.18

104.08

102.07

-1.93

0.03

25)

ESTONIA

116.48

91.88

79.14

-13.87

0.03

26)

CYPRUS

56.62

54.99

61.57

11.95

0.02

Annual Report 2013-14

281

Region/Countries

27)

Apr-Mar 2012 LUXEMBOURG

9.1

1.2 European Free Trade Associatipn 1464.13 (EFTA)

Apr-Mar 2013

Apr-Mar 2014(P)

%Growth

%Share

8.2

11.74

43.11

1,378.97

2,067.25

49.91

0.66

SWITZERLAND

1095.73

1,118.17

1,817.99

62.59

0.58

NORWAY

334.23

234.6

229.06

-2.36

0.07

ICELAND

34.03

25.92

19.89

-23.28

0.01

LIECHTENSTEIN

0.14

0.27

0.32

16.26

3731.01

4,202.13

4,642.06

10.47

1.48

1.3 Other European Countries

TURKEY

3547.26

3,963.66

4,431.83

11.81

1.42

CROATIA

114.77

133.96

138.99

3.75

0.04

UNION OF MONTENEGRO

30.16

-57.52

0.01

ALBANIA

12.63

17.48

18.73

7.16

0.01

BOSNIA-HRZGOVIN

5.79

6.91

11.57

67.26

MACEDONIA

8.86

9.12

10.79

18.3

24674.16

29,142.52

31,230.11

7.16

9.99

5,280.75

5,396.84

2.2

1.73

SERBIA

& 41.7

Africa

2.1 Southern African Customs Union 4890.06 (SACU)

SOUTH AFRICA

4731.18

5,106.93

5,076.44

-0.6

1.62

NAMIBIA

64.33

56.82

212.35

273.73

0.07

BOTSWANA

50.44

51.48

54.42

5.7

0.02

LESOTHO

21.2

18.25

31.01

69.92

0.01

SWAZILAND

22.91

47.26

22.63

-52.12

0.01

1327.91

1,886.24

2,326.93

23.36

0.74

2.2 Other South African Countries

MOZAMBIQUE

533.36

1,001.18

1,257.17

25.57

0.4

ANGOLA

454.33

488.79

535.95

9.65

0.17

ZAMBIA

210.91

243.08

375.92

54.65

0.12

ZIMBABWE

129.32

153.19

157.88

3.06

0.05

6460.45

6,523.39

6,992.57

7.19

2.24

2.3 West Africa

NIGERIA

2702.01

2,740.04

2,666.11

-2.7

0.85

GHANA

800.35

744.12

830.76

11.64

0.27

BENIN

654.69

479.13

763.97

59.45

0.24

282

Annual Report 2013-14

Region/Countries

Apr-Mar 2012

Apr-Mar 2013

Apr-Mar 2014(P)

%Growth

%Share

TOGO

355

299.88

443.63

47.94

0.14

SENEGAL

365.05

490.24

426.45

-13.01

0.14

COTE D’ IVOIRE

282.53

395.97

298.83

-24.53

0.1

CAMEROON

196.39

250.98

259.62

3.44

0.08

LIBERIA

78.78

127.02

253.45

99.53

0.08

CONGO P REP

347.4

199.12

210.51

5.72

0.07

10)

GUINEA

131.94

206.07

205.93

-0.07

0.07

11)

MALI

98.37

78.66

108.78

38.29

0.03

12)

BURKINA FASO

85.05

86.1

103.08

19.72

0.03

13)

SIERRA LEONE

86.23

184.23

100.85

-45.26

0.03

14)

NIGER

88.07

56.18

86.32

53.65

0.03

15)

GAMBIA

64.21

55.56

85.1

53.16

0.03

16)

MAURITANIA

46.52

41.84

58.02

38.66

0.02

17)

GABON

54.17

52.52

-3.03

0.02

18)

GUINEA BISSAU

12.42

10.88

19.02

74.7

0.01

19)

EQUTL GUINEA

17.15

21.31

17.24

-19.08

0.01

20)

CAPE VERDE IS

0.47

0.95

1.43

51.17

21)

SAO TOME

0.77

0.91

0.92

1.61

22)

ST HELENA

0.04

0.03

-13.64

707.8

931

1,095.47

17.67

0.35

2.4 Central Africa

UGANDA

435.08

465

534.22

14.89

0.17

MALAWI

148.26

153.3

221

44.17

0.07

CONGO D. REP.

6.88

147.29

181.39

23.15

0.06

RWANDA

48.28

77.86

87.51

12.39

0.03

CHAD

38.91

46.42

32.9

-29.12

0.01

BURUNDI

24.12

32.67

30.71

-6

0.01

C AFRI REP

6.28

8.45

7.73

-8.51

6594.26

8,839.31

9,976.58

12.87

3.19

2.5 East Africa

KENYA

2277.48

3,770.35

3,892.54

3.24

1.25

TANZANIA REP

1614.69

2,152.25

3,401.40

58.04

1.09

MAURITIUS

1400.51

1,310.80

1,000.18

-23.7

0.32

Annual Report 2013-14

283

Region/Countries

Apr-Mar 2012

Apr-Mar 2013

Apr-Mar 2014(P)

%Growth

%Share

ETHIOPIA

464.17

748.82

818.2

9.26

0.26

DJIBOUTI

475.34

411.86

300.46

-27.05

0.1

MADAGASCAR

123.63

154.42

238.7

54.58

0.08

SOMALIA

144.72

182.32

206.53

13.28

0.07

REUNION

48.03

48.87

52.31

7.05

0.02

SEYCHELLES

34.72

38.87

52.66

35.46

0.02

10)

COMOROS

10.98

20.74

13.61

-34.4

4693.68

5,681.84

5,441.72

-4.23

1.74

2.6 North Africa

EGYPT A RP

2421.95

2,897.33

2,563.87

-11.51

0.82

ALGERIA

835.65

1,088.73

1,068.78

-1.83

0.34

SUDAN

717.37

755.12

862.14

14.17

0.28

MOROCCO

372.1

426.56

385.52

-9.62

0.12

LIBYA

60.98

215.3

287.71

33.63

0.09

TUNISIA

285.62

298.79

273.69

-8.4

0.09

CANARY IS

0.01

-64.18

America

50444.15

53,343.69

54,249.28

1.7

17.35

3.1 North America

38167.3

39,825.67

43,431.53

9.05

13.89

USA

34745.52

36,160.84

39,169.47

8.32

12.53

MEXICO

1368.21

1,628.24

2,222.55

36.5

0.71

CANADA

2053.56

2,036.58

2,039.51

0.14

0.65

12276.85

13,518.03

10,817.75

-19.98

3.46

3.2 Latin America

BRAZIL

5769.75

6,048.57

5,546.53

-8.3

1.77

COLOMBIA

892.42

912.12

1,007.41

10.45

0.32

CHILE

522.09

690

663.72

-3.81

0.21

PERU

564.3

637.97

620.17

-2.79

0.2

ARGENTINA

473.63

539.96

611.32

13.22

0.2

ECUADOR

231.55

263.55

290.38

10.18

0.09

BAHAMAS

2243.52

2,669.86

233.39

-91.26

0.07

GUATEMALA

191.29

224.61

212.36

-5.45

0.07

PANAMA REPUBLIC

232.17

226.49

211.4

-6.67

0.07

10)

VENEZUELA

249.74

234.14

196.8

-15.95

0.06

284

Annual Report 2013-14

Region/Countries

Apr-Mar 2012

Apr-Mar 2013

Apr-Mar 2014(P)

%Growth

%Share

11)

URUGUAY

140.68

143.19

160.95

12.4

0.05

12)

DOMINIC REP

103.43

108.86

125.7

15.47

0.04

13)

HONDURAS

91.66

109.99

107.77

-2.02

0.03

14)

TRINIDAD

82.46

81.52

96.55

18.43

0.03

15)

PARAGUAY

66.93

82.94

88.91

7.2

0.03

16)

COSTA RICA

65.53

74.28

81.04

9.11

0.03

17)

FR GUIANA

1.62

3.3

73.15

2,117.66

0.02

18)

NETHERLANDANTIL

39.31

59.87

68.5

14.42

0.02

19)

EL SALVADOR

37.52

56.06

65.11

16.14

0.02

20)

NICARAGUA

45.7

59.26

59.23

-0.04

0.02

21)

HAITI

48.3

63.69

59.21

-7.02

0.02

22)

BOLIVIA

24.84

57.39

53.19

-7.32

0.02

23)

JAMAICA

26.66

29.7

36.22

21.95

0.01

24)

CUBA

36.67

35.82

35.42

-1.13

0.01

25)

GUYANA

21.53

21.94

24.19

10.22

0.01

26)

SURINAME

10.43

30.34

24.18

-20.29

0.01

27)

BELIZE

26.1

23.56

22.46

-4.68

0.01

28)

MARTINIQUE

6.46

5.88

7.68

30.64

29)

GUADELOUPE

7.09

6.58

6.53

-0.77

30)

BARBADOS

7.55

5.87

6.44

9.74

31)

VIRGIN IS US

3.72

1.43

3.9

172.81

32)

CAYMAN IS

0.98

0.39

3.13

711.47

33)

BERMUDA

1.02

1.35

2.59

92.23

34)

DOMINICA

2.82

2.4

2.41

0.13

35)

ST LUCIA

1.32

1.03

2.28

121.21

36)

ANTIGUA

0.87

1.36

2.19

60.75

37)

ST VINCENT

0.61

0.35

1.84

427.86

38)

GRENADA

1.03

0.85

1.46

71.98

39)

ST KITT N A

0.66

0.63

1.22

92.95

40)

BR VIRGN IS

1.04

0.55

0.39

-28.94

41)

TURKS C IS

0.17

0.32

0.37

14.22

Annual Report 2013-14

285

Region/Countries

Apr-Mar 2012

Apr-Mar 2013

42)

MONTSERRAT

0.28

0.04

43)

FALKLAND IS

1.39

Apr-Mar 2014(P)

%Growth

%Share

0.07

82.57

Asia

153104.8

152,699.25

155,277.23

1.69

49.67

4.1 East Asia (Oceania)

2816.83

2,732.65

2,691.21

-1.52

0.86

AUSTRALIA

2476.84

2,348.65

2,298.16

-2.15

0.74

NEW ZEALAND

251.64

302.06

281.81

-6.71

0.09

FIJI IS

36.78

41.01

49.05

19.61

0.02

PAPUA N GNA

35.9

29.77

43.98

47.7

0.01

SOLOMON IS

1.18

1.52

6.74

342.23

SAMOA

2.2

2.01

4.3

114.24

VANUATU REP

2.67

3.43

2.78

-18.97

TIMOR LESTE

7.42

2.15

2.19

1.91

TONGA

0.77

1.68

1.04

-38.04

10)

KIRIBATI REP

1.21

0.37

0.94

156.19

11)

NAURU RP

0.21

0.17

9,550.00

12)

TUVALU

0.01

0.06

916.67

36744.43

33,008.31

33,181.55

0.52

10.61

4.2 ASEAN

SINGAPORE

16857.77

13,619.31

12,509.84

-8.15

VIETNAM SOC REP

3719.09

3,967.37

5,439.91

37.12

1.74

INDONESIA

6678

5,331.31

4,905.76

-7.98

1.57

MALAYSIA

3980.36

4,444.10

4,196.32

-5.58

1.34

THAILAND

2961.01

3,733.17

3,703.02

-0.81

1.18

PHILIPPINES

992.91

1,187.19

1,418.01

19.44

0.45

MYANMAR

545.38

544.66

784.58

44.05

0.25

CAMBODIA

99.45

112.28

141.26

25.81

0.05

LAO PD RP

14.97

28.91

49.89

72.56

0.02

10)

BRUNEI

895.49

40.02

32.95

-17.68

0.01

45360.29

51,053.72

48,241.67

-5.51

15.43

4.3 West Asia- GCC

U ARAB EMTS

35925.52

36,316.65

30,514.53

-15.98

9.76

SAUDI ARAB

5683.29

9,785.84

12,214.44

24.82

3.91

OMAN

1322.13

2,599.49

2,819.39

8.46

0.9

286

Annual Report 2013-14

Region/Countries

Apr-Mar 2012

Apr-Mar 2013

Apr-Mar 2014(P)

%Growth

%Share

KUWAIT

1181.41

1,061.08

1,063.44

0.22

0.34

QATAR

807.95

687.18

987.93

43.76

0.32

BAHARAIN IS

439.99

603.47

641.95

6.38

0.21

9537.16

11,356.68

13,018.81

14.64

4.16

4.4 Other West Asia

IRAN

2411.36

3,351.21

4,925.20

46.97

1.58

ISRAEL

4041.78

3,740.19

3,747.04

0.18

1.2

JORDAN

821.08

1,000.57

1,595.50

59.46

0.51

YEMEN REPUBLC

730.62

1,477.27

1,306.81

-11.54

0.42

IRAQ

763.97

1,278.13

916.1

-28.32

0.29

LEBANON

231.87

250.55

293.36

17.09

0.09

SYRIA

536.48

258.77

234.8

-9.26

0.08

4.5 NE Asia

45349.59

39,437.08

40,811.09

3.48

13.05

CHINA P RP

18118.18

13,579.51

14,865.18

9.47

4.76

HONG KONG

12931.9

12,279.20

12,733.36

3.7

4.07

JAPAN

6330.22

6,101.24

6,814.43

11.69

2.18

KOREA RP

4355.22

4,205.67

4,204.98

-0.02

1.35

TAIWAN

3348.44

3,043.99

1,989.18

-34.65

0.64

KOREA DP RP

229.19

202.83

186.81

-7.9

0.06

MONGOLIA

34.97

23.66

15.53

-34.38

MACAO

1.48

0.96

1.62

68.81

13296.5

15,110.80

17,332.89

14.71

5.54

4.6 South Asia

BANGLADESH PR

3789.21

5,144.99

6,051.00

17.61

1.94

SRI LANKA DSR

4378.79

3,983.87

4,549.14

14.19

1.46

NEPAL

2721.57

3,088.84

3,575.42

15.75

1.14

PAKISTAN IR

1541.57

2,064.89

2,275.02

10.18

0.73

AFGHANISTAN TIS

510.9

472.63

474.25

0.34

0.15

BHUTAN

229.86

233.22

300.36

28.79

0.1

MALDIVES

124.6

122.36

107.7

-11.98

0.03

CIS & Baltics

3059.98

3,682.98

3,508.79

-4.73

1.12

5.1 CARs Countries

429.55

551.2

532.78

-3.34

0.17

244.39

286.23

256.32

-10.45

0.08

KAZAKHSTAN

Annual Report 2013-14

287

Region/Countries

Apr-Mar 2012

Apr-Mar 2013

Apr-Mar 2014(P)

%Growth

%Share

UZBEKISTAN

89.39

124.9

114.07

-8.67

0.04

TURKMENISTAN

43.95

69.92

73.63

5.3

0.02

TAJIKISTAN

21.28

35.16

54.27

54.37

0.02

KYRGHYZSTAN

30.55

34.99

34.49

-1.42

0.01

2630.42

3,131.79

2,976.01

-4.97

0.95

5.2 Other CIS Countries

RUSSIA

1778.27

2,295.68

2,147.07

-6.47

0.69

UKRAINE

491.28

520.09

479.49

-7.81

0.15

AZERBAIJAN

71.62

87.16

122.17

40.16

0.04

GEORGIA

121.74

124.16

-26.71

0.03

ARMENIA

38.29

40.48

72.47

79.02

0.02

BELARUS

121.72

55.27

53.34

-3.48

0.02

MOLDOVA

7.5

8.94

10.47

17.12

Unspecified Region

16882.58

5,481.76

10,040.79

83.17

3.21

UNSPECIFIED

16336.76

5,332.69

9,749.49

82.82

3.12

GIBRALTAR

292.79

0.27

97.61

36,690.50 0.03

PUERTO RICO

103.03

106.29

90.59

-14.77

SERBIA

31.52

0.01

MONTENEGRO

30.57

0.01

ERITREA

31.52

18.99

16.45

-13.36

0.01

NEW CALEDONIA

59.5

12.52

8.8

-29.69

ARUBA

2.68

2.88

3.33

15.76

FAROE IS.

0.86

1.46

3.08

110.93

10) FR POLYNESIA

11.95

1.78

2.8

57.6

11) GREENLAND

0.27

0.47

1.73

270.33

12) NORFOLK IS

0.24

0.49

1.36

175.38

13) MARSHALL ISLAND

0.53

0.09

1.18

1,221.56

14) MICRONESIA

0.21

0.18

0.57

207.73

15) PANAMA C Z

0.46

0.73

0.36

-50.47

16) MONACO

0.52

0.75

0.31

-59.06

17) GUAM

1.93

1.01

0.28

-71.95

18) TOKELAU IS

0.05

0.03

0.17

441.38

288

0.03

Annual Report 2013-14

Region/Countries

Apr-Mar 2012

Apr-Mar 2013

Apr-Mar 2014(P)

%Growth

%Share

19) ANDORRA

0.25

0.11

0.12

12.82

20) COOK IS

0.12

0.05

0.09

98.49

21) ANTARTICA

0.06

0.17

0.06

-64.07

22) PITCAIRN IS.

0.06

0.01

0.06

655.13

23) N. MARIANA IS.

0.02

0.06

1,800.00

24) AMERI SAMOA

2.05

0.37

0.05

-85.3

25) ST PIERRE

0.04

0.03

-20.4

26) PALAU

0.22

0.04

0.03

-22.22

27) HEARD MACDONALD

0.03

2,254.55

28) ANGUILLA

0.12

0.15

0.02

-83.69

29) PACIFIC IS

35.03

0.01

0.02

233.33

30) NIUE IS

0.04

0.01

-63.03

31) CHRISTMAS IS.

0.02

0.03

0.01

-73.82

32) COCOS IS

0.74

0.05

0.01

-89

33) WALLIS F IS

0.21

0.02

-97.04

34) SAHARWI A.DM RP

0.16

35) SAN MARINO

0.02

36) NEUTRAL ZONE

0.16

37) CHANNEL IS

0.02

0.06

38) FR S ANT TR

0.02

0.01

305963.91

300,400.67

Total

Data Source: DGCIS, Kolkata

Annual Report 2013-14

312,610.29

4.06

100

DOC-NIC

289

Table 3.3 Import of Principal Commodities

(Values in US$ Millions, Growth and Share in percentage)

Commodity

Apr-Mar 2012

Apr-Mar 2013

Apr-Mar 2014(P)

%Growth

%Share

BULK IMPORTS

213,495.93

222,596.66

214,913.73

-3.45

47.75

01) Cereals & Preparations

73.69

85.66

88.81

3.68

0.02

Rice

1.16

0.73

1.37

89.1

Wheat

0.02

1.11

4.42

299.38

Other cereals

6.42

20.2

16.3

-19.32

Preparations

66.1

63.63

66.72

4.87

0.01

11,414.46

9,074.95

6,469.27

-28.71

1.44

02) Fertilizers

Crude

1,729.54

1,351.63

939.81

-30.47

0.21

Sulphur & Un-roasted pyrites

478.44

319.47

191.79

-39.97

0.04

Manufactured

9,206.48

7,403.85

5,337.67

-27.91

1.19

03) Edible Oil

9,668.05

11,235.00

9,332.81

-16.93

2.07

04) Sugar

569.7

392.18

-31.16

0.09

05) Pulp & waste paper

1,366.81

1,285.20

1,385.07

7.77

0.31

06) Paper board & mfrs

2,149.55

2,224.68

2,218.56

-0.27

0.49

07) Newsprint

1,032.09

803.59

887.87

10.49

0.2

08) Crude rubber

2,509.13

2,234.51

2,124.97

-4.9

0.47

09) Non-ferrous metals

4,911.02

5,108.02

5,465.15

6.99

1.21

10) Metalliferrous ores & products

13,379.65

14,989.71

13,481.33

-10.06

11) Iron & Steel

11,958.93

10,945.08

7,919.59

-27.64

1.76

12) Petroleum crude & products

154,967.55

164,040.56

165,148.10

0.68

36.69

PEARLS, PRECIOUS & SEMI-PRECIOUS 28,199.64 STONES

22,666.61

24,001.39

5.89

5.33

MACHINERY

51,748.42

52,020.21

45,058.91

-13.38

10.01

01) Machine Tools

2,987.07

2,743.79

2,042.58

-25.56

0.45

02) Machinery other than electrical

30,089.53

27,611.65

23,657.99

-14.32

5.26

03) Electrical machinery

4,772.85

4,441.47

4,349.80

-2.06

0.97

290

Annual Report 2013-14

Commodity

Apr-Mar 2012

Apr-Mar 2013

Apr-Mar 2014(P)

%Growth

%Share

04) Transport equipment

13,898.97

17,223.30

15,008.53

-12.86

3.33

PROJECT GOODS

8,764.59

6,554.29

4,517.81

-31.07

OTHERS

187,094.60

186,866.66

161,540.36

-13.55

35.89

01) Cashew Nuts

1,135.75

971.64

756.32

-22.16

0.17

02) Fruits & Nuts

966.91

1,160.27

1,283.47

10.62

0.29

03) Wool raw

394.53

330.93

325.22

-1.73

0.07

04) Silk raw

232.13

227.21

148.51

-34.64

0.03

05) Synth.速.fibres

291.46

268.61

312.44

16.32

0.07

06) Pulses

1,853.04

2,337.88

1,747.58

-25.25

0.39

07) Raw Hides & Skins

92.6

79.96

78.05

-2.39

0.02

08) Leather

450.49

428.58

501.66

17.05

0.11

09) Coal, coke & briquettes

17,515.75

16,995.89

16,431.87

-3.32

3.65

10) Non-metallic mnl. mfrs.

2,060.86

2,074.97

1,895.67

-8.64

0.42

11) Other crude minerals

601.07

644.95

497.02

-22.94

0.11

12) Organic & Inorganic chmls.

18,836.48

19,319.84

20,213.03

4.62

4.49

13) Dyeing, tanning matrl.

1,462.02

1,450.54

1,503.26

3.63

0.33

14) Medicinal & Pharma. prds.

2,969.88

3,117.96

2,973.83

-4.62

0.66

15) Artf. resins, etc.

7,516.28

8,642.75

9,103.34

5.33

2.02

16) Chemical products

3,481.47

3,628.15

3,726.25

2.7

0.83

17) Other Textile yarn, fabrics, etc

1,855.59

1,852.09

1,884.48

1.75

0.42

18) Manufactures of metals

4,235.39

4,277.20

4,064.80

-4.97

0.9

19) Profl. instruments, etc.

5,233.45

5,350.89

5,185.29

-3.09

1.15

20) Electronic goods

32,706.81

31,414.00

30,968.86

-1.42

6.88

21) Wood and wood products

2,472.19

2,607.86

2,561.55

-1.78

0.57

22) Gold & Silver

61,620.42

55,793.71

33,430.94

-40.08

7.43

23) Tea

45.86

50.34

46.66

-7.3

0.01

24) Wollen Yarn and Fabrics

38.41

43.49

39.74

-8.62

0.01

25) Cotton yarn and fabrics

255.42

286.65

285.79

-0.3

0.06

Annual Report 2013-14

291

Commodity

Apr-Mar 2012

Apr-Mar 2013

Apr-Mar 2014(P)

%Growth

%Share

26) Man made fâ&#x20AC;&#x2122;mnt spun yarn

1,013.94

1,054.63

1,068.09

1.28

0.24

27) Made up textile articles

340.44

349.24

307.11

-12.06

0.07

28) Ready made garments (wov.)

315.12

326.84

426.71

30.56

0.09

29) Silk yarn and fabrics

108.09

80.24

65.52

-18.34

0.01

30) Milk & Cream

215.45

19.71

25.38

28.79

0.01

31) Spices

459.81

481.41

567.83

17.95

0.13

32) Oil seeds

19.16

74.84

161.67

116.02

0.04

33) Jute raw

95.78

68.48

25.71

-62.45

0.01

34) Woollen & Cotton rags

48.2

62.73

61.53

-1.91

0.01

35) Veg. & animal fats

4.14

6.81

4.83

-29.08

36) Cottow raw and waste

223.18

455.75

393.71

-13.61

0.09

37) Essential oils & Cos.prep

462.15

526.41

510.58

-3.01

0.11

38) Cement

79.45

94.73

58.61

-38.13

0.01

39) Computer Soft. physical form

1,543.73

582.01

602.12

3.46

0.13

40) Other Commodities

13,841.73

19,326.46

17,295.34

-10.51

3.84

489,319.49

490,736.65

450,068.43

-8.29

100

Total

Data Source: DGCIS, Kolkata

292

DOC-NIC

Annual Report 2013-14

Table 3.4 Import from Principal Regions and Countries

(Values in US $ Million,Growth and Share in percentage)

Region/Countries

Apr-Mar 2012

Apr-Mar 2013

Apr-Mar 2014(P)

%Growth

%Share

1) Europe

94055.97

87,528.32

70,669.92

-19.26

15.7

56530.16

52,274.54

49,504.49

-5.3

1.1 EU Countries

GERMANY

15498.62

14,325.79

12,771.37

-10.85

2.84

BELGIUM

10373.86

10,046.87

10,752.62

7.02

2.39

7130.41

6,293.09

6,050.07

-3.86

1.34

ITALY

5045.26

4,711.27

4,159.57

-11.71

0.92

FRANCE

4300.2

4,652.36

3,565.01

-23.37

0.79

NETHERLAND

2604.9

2,379.09

2,937.17

23.46

0.65

SPAIN

1817.73

1,815.66

1,843.54

1.54

0.41

SWEDEN

1910.63

1,681.43

1,679.56

-0.11

0.37

FINLAND

2112.55

1,106.85

1,041.42

-5.91

0.23

10)

AUSTRIA

1064.6

929.22

828.92

-10.79

0.18

11)

POLAND

578.01

863.25

623.51

-27.77

0.14

12)

IRELAND

409.47

497.15

603.04

21.3

0.13

13)

CZECH REPUBLIC

726.81

644.26

518.88

-19.46

0.12

14)

DENMARK

610.4

541.71

445.36

-17.79

0.1

15)

ROMANIA

459.46

311.12

375.65

20.74

0.08

16)

PORTUGAL

296.76

378.21

340.15

-10.06

0.08

17)

HUNGARY

428.23

262.91

220.48

-16.14

0.05

18)

SLOVENIA

156.83

117.5

118.12

0.53

0.03

19)

ESTONIA

231.46

219.9

115.3

-47.57

0.03

20)

GREECE

111.81

111.87

109.44

-2.18

0.02

21)

LATVIA

143.7

73.63

103.89

41.1

0.02

22)

BULGARIA

101.65

90.09

93.65

3.95

0.02

23)

LITHUANIA

203.09

45.91

53.72

17.02

0.01

24)

SLOVAK REP

86.48

63.44

53.14

-16.24

0.01

25)

LUXEMBOURG

56.77

48.09

46.16

-4.01

0.01

26)

MALTA

42.17

42.6

34.45

-19.12

0.01

Annual Report 2013-14

293

Region/Countries

27)

Apr-Mar 2012 CYPRUS

1.2 European Free Trade Associatipn (EFTA)

Apr-Mar 2013

Apr-Mar 2014(P)

%Growth

%Share

28.29

21.27

20.31

-4.51

36102.67

33,114.59

20,166.81

-39.1

4.48

35241.74

32,166.54

19,412.70

-39.65

4.31

SWITZERLAND

NORWAY

855.5

944.98

747.02

-20.95

0.17

ICELAND

4.67

2.21

6.63

199.73

LIECHTENSTEIN

0.76

0.85

0.47

-45.57

1423.13

2,139.19

998.61

-53.32

0.22

1.3 Other European Countries

TURKEY

1222.56

2,034.18

760.74

-62.6

0.17

ALBANIA

141.11

31.04

198.8

540.39

0.04

MACEDONIA

14.77

22.94

19.92

-13.19

CROATIA

23.97

18.05

9.72

-46.15

UNION OF MONTENEGRO

2.32

13.15

7.77

-40.88

BOSNIA-HRZGOVIN

18.41

19.82

1.66

-91.61

SERBIA

Africa

44104.39

41,110.68

36,842.74

-10.38

8.19

2.1 Southern African Customs Union (SACU)

11348.87

9,029.76

6,602.62

-26.88

1.47

11237.99

8,887.89

6,079.30

-31.6

1.35

SOUTH AFRICA

BOTSWANA

51.39

57.61

382.98

564.82

0.09

SWAZILAND

46.24

70.71

124.83

76.53

0.03

NAMIBIA

10.21

9.19

41.39

LESOTHO

3.04

4.36

2.51

-42.42

6900.78

7,808.44

6,529.20

-16.38

1.45

6624.74

7,157.54

5,980.60

-16.44

1.33

2.2 Other South African Countries

ANGOLA

MOZAMBIQUE

104.34

291.49

292.96

0.5

0.07

ZAMBIA

168.72

324.87

243.15

-25.15

0.05

ZIMBABWE

2.98

34.54

12.5

-63.82

17765.09

16,264.44

17,446.13

7.27

3.88

14755.19

12,086.11

14,314.55

18.44

3.18

2.3 West Africa

NIGERIA

GABON

146.22

817.04

868.5

6.3

0.19

GHANA

331.21

277.61

370.57

33.48

0.08

294

Annual Report 2013-14

Region/Countries

Apr-Mar 2012

Apr-Mar 2013

Apr-Mar 2014(P)

%Growth

%Share

EQUTL GUINEA

206.11

524.83

301.82

-42.49

0.07

COTE D’ IVOIRE

466.79

384.23

298.4

-22.34

0.07

CAMEROON

523.58

443.18

268.16

-39.49

0.06

GUINEA

262.21

527.83

199.01

-62.3

0.04

BENIN

254.7

245.73

167.61

-31.79

0.04

SENEGAL

19.57

0.39

153.6 39,152.49

0.03

10)

TOGO

150.32

177.41

156.34

-11.87

0.03

11)

GUINEA BISSAU

235.68

140.2

109.68

-21.77

0.02

12)

CONGO P REP

254.95

454.72

90.02

-80.2

0.02

13)

MALI

6.19

29.55

70.91

140

0.02

14)

GAMBIA

40.02

30.31

29.2

-3.67

0.01

15)

BURKINA FASO

16.41

14.66

16.55

12.88

16)

LIBERIA

8.99

21.02

14.51

-30.97

17)

MAURITANIA

4.44

11.25

7.35

-34.68

18)

SIERRA LEONE

5.53

5.8

5.56

-4.12

19)

CAPE VERDE IS

3.23

3.42

3.18

-7.15

20)

NIGER

73.68

69.05

0.54

-99.22

21)

ST HELENA

0.07

0.1

0.09

-2.99

22)

SAO TOME

0.02

90.61

230.12

107

-53.5

0.02

2.4 Central Africa

UGANDA

18.23

27.4

33.14

20.96

0.01

CHAD

45.98

157.16

30.07

-80.87

0.01

CONGO D. REP.

MALAWI

0.02

27.29

0.01

23.69

43.11

15.15

-64.85

C AFRI REP

2.02

1.99

0.91

-54.34

RWANDA

0.15

0.24

0.25

5.96

BURUNDI

0.52

0.23

0.18

-19.96

543.01

1,054.60

1,034.38

-1.92

0.23

240.57

752.88

724.81

-3.73

0.16

2.5 East Africa

TANZANIA REP

KENYA

113.3

105.95

126.63

19.51

0.03

MADAGASCAR

82.42

72.88

52.84

-27.5

0.01

Annual Report 2013-14

295

Region/Countries

Apr-Mar 2012

Apr-Mar 2013

Apr-Mar 2014(P)

%Growth

%Share

SOMALIA

3.4

12.54

46.39

269.97

0.01

ETHIOPIA

29.39

38.56

28.4

-26.34

0.01

REUNION

27.55

27.74

22.79

-17.84

0.01

MAURITIUS

38.38

28.44

20.79

-26.91

COMOROS

3.26

8.02

6.59

-17.82

DJIBOUTI

2.16

5.18

4.15

-19.92

10)

SEYCHELLES

2.59

2.4

0.99

-58.71

7456.02

6,723.32

5,123.41

-23.8

1.14

2.6 North Africa

EGYPT A RP

3004.45

2,553.47

2,388.65

-6.45

0.53

MOROCCO

1658.15

1,309.03

894.58

-31.66

0.2

ALGERIA

2161.26

683.55

860.9

25.95

0.19

SUDAN

429.67

127.14

436.18

243.09

0.1

LIBYA

38.33

1,834.80

451.54

-75.39

0.1

TUNISIA

164.16

215.34

91.56

-57.48

0.02

45023.75

59,539.66

58,123.03

-2.38

12.91

28845.2

32,042.56

29,258.19

-8.69

6.5

23380.86

25,204.73

22,313.80

-11.47

4.96

America

3.1 North America

USA

MEXICO

2566.79

4,037.62

3,673.27

-9.02

0.82

CANADA

2897.55

2,800.22

3,271.11

16.82

0.73

16178.56

27,497.09

28,864.84

4.97

6.41

3.2 Latin America

VENEZUELA

6666.74

14,117.67

13,940.13

-1.26

3.1

COLOMBIA

560.27

2,352.79

4,970.62

111.26

1.1

BRAZIL

4271.3

4,825.76

3,807.74

-21.1

0.85

CHILE

2194.15

2,992.31

3,020.86

0.95

0.67

ARGENTINA

1105.7

1,198.71

1,394.54

16.34

0.31

PERU

556.12

561.32

604.95

7.77

0.13

BAHAMAS

3.54

102.28

494.21

383.2

0.11

ECUADOR

44.19

872.54

255.48

-70.72

0.06

COSTA RICA

178.4

219.72

203.99

-7.16

0.05

10)

PANAMA REPUBLIC

159.08

109.55

41.65

-61.98

0.01

11)

HONDURAS

7.75

17.82

22.59

26.73

0.01

296

Annual Report 2013-14

Region/Countries

Apr-Mar 2012

Apr-Mar 2013

Apr-Mar 2014(P)

%Growth

%Share

12)

URUGUAY

27.63

24.41

20.42

-16.37

13)

SURINAME

4.39

13.4

13.15

-1.91

14)

GUATEMALA

6.72

8.31

13.12

57.93

15)

DOMINIC REP

6.17

10.81

12.5

15.58

16)

EL SALVADOR

8.3

8.64

7.99

-7.58

17)

GUYANA

9.08

4.59

7.28

58.76

18)

PARAGUAY

11.05

8.66

5.28

-39.05

19)

TRINIDAD

203.75

8.9

5.35

-39.84

20)

NETHERLANDANTIL

28.24

15.73

4.33

-72.45

21)

NICARAGUA

0.98

0.82

2.65

224.48

22)

FR GUIANA

106.46

1.38

2.47

79.02

23)

CUBA

4.07

3.95

2.4

-39.35

24)

BOLIVIA

4.06

7.41

2.42

-67.31

25)

VIRGIN IS US

0.09

0.4

2.26

458.53

26)

FALKLAND IS

1.44

1.6

27)

BELIZE

0.08

0.21

1.55

634.74

28)

HAITI

1.94

1.32

0.95

-28.07

29)

JAMAICA

1.57

2.4

0.9

-62.51

30)

ST LUCIA

0.39

0.41

0.5

20.91

31)

GUADELOUPE

1.89

0.42

0.35

-16.71

32)

BR VIRGN IS

0.42

0.97

0.16

-83.2

33)

MARTINIQUE

0.04

0.12

177.52

34)

TURKS C IS

0.01

0.05

0.12

137.68

35)

BARBADOS

0.58

0.1

0.11

19.98

36)

DOMINICA

0.26

1.58

0.07

-95.72

37)

ANTIGUA

0.06

0.23

0.04

-81.18

38)

ST KITT N A

0.1

0.02

5,666.67

39)

CAYMAN IS

0.01

0.01 13,000.00

40)

MONTSERRAT

41)

GRENADA

0.03

42)

BERMUDA

0.04

Annual Report 2013-14

0 0

0 130

297

Region/Countries

Apr-Mar 2012

Apr-Mar 2013

Apr-Mar 2014(P)

%Growth

%Share

Asia

296694.95

292,685.93

273,934.57

-6.41

60.87

4.1 East Asia (Oceania)

16872.48

13,930.25

10,949.64

-21.4

2.43

15783.44

13,085.70

10,138.94

-22.52

2.25

827.09

696.62

619.48

-11.07

0.14

199.81

104.64

178.3

70.38

0.04

22.1

15.13

5.3

-64.96

15.18

21.03

4.76

-77.38

2.51

1.38

45.11

22.17

0.05

0.83

1,540.12

AUSTRALIA

NEW

PAPUA N GNA

SOLOMON IS

NAURU RP

FIJI IS

TIMOR LESTE

TONGA

0.01

0.07

0.02

-72.26

SAMOA

0.16

0.18

0.02

-90.49

10)

KIRIBATI REP

0.08

-96.28

11)

TUVALU

12)

VANUATU REP

4.2 ASEAN

ZEALAND

0.01 5.37 42173.56

42,866.36

41,499.46

-3.19

9.22

INDONESIA

14839.39

14,879.49

14,909.72

0.2

3.31

MALAYSIA

9473.63

9,951.06

9,211.42

-7.43

2.05

SINGAPORE

8339.36

7,486.38

6,773.85

-9.52

1.51

THAILAND

5278.71

5,352.61

5,358.74

0.11

1.19

VIETNAM SOC REP

1717.49

2,314.78

2,594.29

12.08

0.58

MYANMAR

1386.1

1,412.69

1,392.14

-1.45

0.31

BRUNEI

604.97

814.8

763.6

-6.28

0.17

PHILIPPINES

437.49

504

391.77

-22.27

0.09

LAO PD RP

89.14

138.64

91.2

-34.22

0.02

10)

CAMBODIA

7.28

11.9

12.72

6.9

102393.66

108,092.06

102,047.79

-5.59

22.67

4.3 West Asia- GCC

SAUDI ARAB

32107.74

33,998.11

36,535.82

7.46

8.12

U ARAB EMTS

36768.16

39,138.36

29,110.05

-25.62

6.47

KUWAIT

16333.51

16,588.13

17,153.52

3.41

3.81

QATAR

12927.08

15,693.08

15,728.93

0.23

3.49

OMAN

3347.17

2,009.72

2,954.49

47.01

0.66

298

Annual Report 2013-14

Region/Countries

Apr-Mar 2012 BAHARAIN IS

4.4 Other West Asia

Apr-Mar 2013

Apr-Mar 2014(P)

%Growth

%Share

910.01

664.66

564.97

-15

0.13

37942.17

35,210.00

32,677.96

-7.19

7.26

IRAQ

18919.32

19,247.31

18,519.29

-3.78

4.11

IRAN

13720.97

11,594.46

10,332.08

-10.89

2.3

ISRAEL

2647.42

2,356.66

2,312.17

-1.89

0.51

YEMEN REPUBLC

970.92

958.92

782.18

-18.43

0.17

JORDAN

1483.43

942.28

618.38

-34.37

0.14

SYRIA

178.66

80.37

76.62

-4.66

0.02

LEBANON

21.46

30.01

37.25

24.13

0.01

94883

89,907.33

84,302.43

-6.23

18.73

4.5 NE Asia

CHINA P RP

54688.19

52,248.33

50,991.45

-2.41

11.33

KOREA RP

12793.34

13,105.12

12,431.05

-5.14

2.76

JAPAN

11965.38

12,412.29

9,479.74

-23.63

2.11

HONG KONG

10416.95

7,907.17

7,333.44

-7.26

1.63

TAIWAN

4805.43

3,963.35

4,042.87

2.01

0.9

KOREA DP RP

197.72

259.39

12.48

-95.19

MONGOLIA

15.17

10.18

8.75

-14.1

MACAO

0.83

1.5

2.65

76.31

2430.08

2,679.95

2,457.29

-8.31

0.55

4.6 South Asia

SRI LANKA DSR

578.04

625.81

677.38

8.24

0.15

NEPAL

549.89

543.1

528.39

-2.71

0.12

BANGLADESH PR

585.73

639.33

460.85

-27.92

0.1

PAKISTAN IR

361.93

541.87

426.88

-21.22

0.09

AFGHANISTAN TIS

133.03

159.55

208.77

30.84

0.05

BHUTAN

202.55

164

151.04

-7.91

0.03

MALDIVES

18.91

6.29

3.97

-36.81

8273.84

7,879.78

7,748.67

-1.66

1.72

255.43

195.11

703.42

260.53

0.16

CIS & Baltics

5.1 CARs Countries

KAZAKHSTAN

195.67

139.99

656.33

368.85

0.15

UZBEKISTAN

30.25

31.85

31.5

-1.11

0.01

TURKMENISTAN

19.71

8.33

14.1

69.35

Annual Report 2013-14

299

Region/Countries

Apr-Mar 2012

Apr-Mar 2013

Apr-Mar 2014(P)

%Growth

%Share

TAJIKISTAN

8.86

12.86

0.86

-93.34

KYRGHYZSTAN

0.93

2.09

0.64

-69.29

8018.41

7,684.68

7,045.24

-8.32

1.57

5.2 Other CIS Countries

RUSSIA

4787.11

4,231.56

3,894.51

-7.97

0.87

UKRAINE

2492.87

2,657.47

1,830.09

-31.13

0.41

AZERBAIJAN

494.35

521.39

1,136.83

118.04

0.25

BELARUS

178.52

214.55

157.77

-26.46

0.04

GEORGIA

58.95

57.53

23.82

-58.59

0.01

ARMENIA

6.16

1.48

1.7

14.48

MOLDOVA

0.45

0.69

0.52

-24.7

Unspecified Region

1166.58

1,992.27

2,749.50

38.01

0.61

UNSPECIFIED

1043.88

1,924.94

2,684.95

39.48

0.6

NEW CALEDONIA

11.27

27.07

27.79

2.65

0.01

PUERTO RICO

34.53

23.2

20.61

-11.15

MARSHALL ISLAND

9.8

0.88

7.28

726.41

ERITREA

3.58

10.9

4.85

-55.52

MONACO

2.58

3.23

-37.93

SERBIA

TOKELAU IS

0.01

0.06

0.3

387.06

NORFOLK IS

0.14

0.54

0.2

-62.69

10) N. MARIANA IS.

11) GIBRALTAR

0.06

0.09

0.13

44.64

12) AMERI SAMOA

1.41

0.78

0.13

-83.06

13) WALLIS F IS

14) MICRONESIA

15) CHRISTMAS IS.

0.08

0.06

-20.72

16) ARUBA

0.11

0.24

0.04

-82.17

17) SAN MARINO

18) FR S ANT TR

19) FR POLYNESIA

20) NIUE IS

300

0.68

0.15

0.1

0.1 33,066.67

0.04

0.02

0.03

14.35

0.02

0.01

0.02

57.64

0.01

0.02

166.67

Annual Report 2013-14

Region/Countries

Apr-Mar 2012

Apr-Mar 2013

Apr-Mar 2014(P)

%Growth

%Share

21) PALAU

0.01

22) COCOS IS

0.03

23) ST PIERRE

24) ANDORRA

0.03

25) FAROE IS.

0.04

26) GREENLAND

0.02

0.06

27) GUAM

0.01

28) HEARD MACDONALD

0.16

29) COOK IS

0.03

30) ANGUILLA

0.14

31) ANTARTICA

0.28

32) PANAMA C Z

58.6

33) PACIFIC IS

0.01

Total

Data Source: DGCIS, Kolkata

Annual Report 2013-14

489319.48

0.01

-97.85

0 0

-99.82

450,068.42

-8.29

100

490,736.64

DOC-NIC

301

Appendix II(A)

Summary of the Audit Observations in the Various Reports of 2013 S. No. 1

Para/Report No. 5.1 (13 of 2013) Non-recovery of dues due to lapses in bullion transactions and camouflaged accounting. Status : Comments of MMTC have been received and ATN is under Process. Final ATN is to be submitted by 18.3.2014.

302

Audit Observations MMTC Limited imports and gold, platinum and silver to exporters under various schemes as per Foreign Trade Policy of Government of India. MMTC also imports Gold and Silver for sale in domestic market under OGL Scheme. Trading of bullion is regulated in accordance with the instructions/guidelines contained in the Precious Metals Procedural Drill (bullion drill) and internal Circulars issued by the Company from time to time. The bullion drill mandates obtaining of Foreign Exchange Rate Cover (FERC) to hedge against exchange rate fluctuations. The cost of such FERC is to be borne by the customer. Further, instructions issued on 18.12.2006 required each transaction to be treated as separate and squared off on completion, so as to avoid bunching of transactions. Failure to adhere to the instructions on bullion trading, camouflaged accounting and ineffective internal control in MMTC Limited resulted in non-realization of dues amounting to Rs. 295.99 crore from customers and avoidable loss of Rs. 53.27 crore (till December 2012) towards interest.

Annual Report 2013-14

Appendix II(B) Sl.No.

Para No. & Report

Gist of the para

Status of the para

Statement showing the Pending (Civil) Audit Paragraphs pending with Audit as on 9.5.2014 1.

4.2 Recoveries at the instance The firm has made appeal to the Appellate (9 of 2011) of Audit Authority which has returned back to DGFT with the request to re-examine afresh. DGFT has rejected the request of the firm and requested for necessary action for recovery of excess terminal excise duty amount.

Entire Report Sale of distribution of The record transfer to O/o DG(CE) No.26 of imported pulses. due to restructuring vide audit letter 2011 No.Report(PAC)/169/transfer to records/2011-12/222 dated 31.10.2012. Views/ATN of DOC have been furnished to M/o Consumer Affairs for preparing ATN on 14.6.2013.

Report No.12 of 2012-13 (New Addition)

Export Credit Guarantee ATN sent to audit on 20.5.2013 for their Corporation of India Ltd. vetted comments.

3.16 Saving of entire provision ATN sent to audit vide OM No.T(1 of 2013) under SPTF Scheme 48015/5/2008-Plant A dated 21.4.2014 (New for vetting. Addition)

3.17 (1 of 2013) (New Addition)

Annual Report 2013-14

Saving of 100 crore or ATN is under submission. Final ATN is to more under a sub head be submitted by 18.1.2014. Assistance to Export Promotion and Market Development Organisation scheme.

303

Statement showing the Pending Customs & Excise Audit Paragraphs Pending as on 9.5.2014 S. No. 1.

304

Para No. & Report 7.1(a) of 10 of 1998

Gist of the para

Status of the para

Non fulfillment of EO(CLA, Out of three cases, two have been Delhi) vetted by C&AG. One case of DCM Toyota is pending with CLA, Delhi on which reminder has been issued on 10.10.2013. CLA Delhi has requested commissioner of Customs to consult DG system of Govt. of India for finding of the record and send the details of export made by the party against the Licence. Ch.IV & V Central Excise, service tax & CAG has sent vetting comments on (6 of 2008) customs ATN letter received on 4.11.2013 and would be sent to all concerned RAs for furnishing revised comments in the matter. 15.3.2 of CA 20 Excess grant of DFRC On revised comments sought by of 2009-10 (Bangalore) CAG, RA Bangalore vide their letter dated 3.10.2013 has informed that they are pursuing the matter with Customs authority Mumbai and inform further course development in the matter. 15.3.6 of CA 20 Excess input allowed in DFRC CAG has sent vetting comments on of 2009-10 License(Chennai) ATN. We have asked to RA, Chennai on 1.11.2013 to re-examine the case and furnish revised comments. CAG Report Central Excise, service tax & CAG has sent vetting comments No.22 of customs on ATN. We have already asked to 2011-12 all concerned RAs on 14.10.2013 for furnishing revised comments. Reminder being issued. 6.3.2 Excess grant of Central Sales Revised ATN sent to audit on (7 of 2006) Tax 28.8.2013.

Annual Report 2013-14

S. No. 7. 8.

9. 10.

11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22.

Para No. & Report 7.1.1 (7 of 2006) 14.3.1 (CA 7 of 2008)

Gist of the para

Non disposal of uncleared warehoused goods. Non payment of duty on the import made by trading unit in EPZ 2.1.6 Irregular reimbursement of (14 of 2009-10) CST on domestic sales 15.1.5 (CA 20 of Incorrect allowance of 2009-10) concession under DTA clearance 15.1.6 (CA 20 of Short levy of debonding 2009-10) 2.1.15 Loss of revenue due to (14 of 2009-10) incorrect grant of exemption 4.2.1 Short levy due to adoption of (24 of 2010-11) incorrect assessable value 4.2.3 Incorrect reimbursement of (24 of 2010-11) CST 2.1.6/2.1.7 Short levy on ineligible DTA (31 of 2011-12) sales by EOU. 2.1.4 Irregular reimbursement of (31 of 2011-12) CST on DTA sale 2.1.3 Incorrect reimbursement of (31 of 2011-12) CST 2.1.1 Export proceeding (31 of 2011-12) realaisation 2.1.2 Non Levy of additional duty of (31 of 2011-12) Customs on DTA clearance 2.1.5 Short levy of excise duty on (31 of 2011-12) DTA clearance 2.1.8 Short levy of duty on DTA (31 of 2011-12) clearance 2.1.9 Anti dumping duty not (31 of 2011-12) collected on DTA sale, FSEZ

Annual Report 2013-14

Status of the para Revised ATN sent to audit on 11.10.2011 by Zone.. Revised ATN sent to audit on 29.8.2007 by zone. ATN sent to audit. Revised ATN sent to audit on 22.10.2009. Pertains to Directorate General of Export Promotion. Revised ATN sent to audit by SEEPZ on 15.10.2012. Revised ATN received on 28.8.2013. Revised ATN sent to audit by VSEZ on 17.10.2012. ATN sent to audit. Revised ATN sent to audit on 26.4.2012. Revised ATN sent to audit by SEEPZ on 15.6.2012. No information received . Reminders sent 27.8.12 and 10.12.13 No information received . Reminders sent 21.11.13 and 10.11.13 Reply awaited from DC, KASEZ Reply awaited from SEEPZ Status being concerned zone

collected

from

305

S. No. 23.

24. 25. 26.

27.

Para No. & Report 2.1.12 CA-14 of 2010 15.1.6 CA-20 of 2009 9.2 CA-10 of 2004 9.2 CA-10 of 2004 8.2 CA-10 of 2001

Gist of the para

Status of the para

Irregular DTA clearance of Information received from SEEPZ surplus/obsolete capital goods Debonding short levy of duty Letter written to Audit F. No. 11/2/2008-EOU dt. 29.1.2009 Non fulfillment of EO/NFEP Letter to audit for dropping letter No. 11/5/2010-EOU dt. 13 May, 11 DTA Sale Letter to audit for dropping letter No. 11/1/2009-EOU dt. 7th June, 10 Irregular sale in domestic tariff Letter to audit for dropping letter area (DTA) No. 11/5/2010-EOU dt. 10th Feb, 11

Statement showing the Pending ECGC Audit Paragraphs (Commercial) Pending as on 9.5.2014 1.

306

Chapter I CA 27 Export Credit Guarantee The Recommendations of this para of 2009 Corporation of India Ltd. has been considered in Report No. 12 of ECGC for the year 2012-13

Annual Report 2013-14

Statement showing the Pending PEC Ltd. Audit Paragraphs (Commercial) as on 9.5.2014 Sl. No. 1.

Para No. & Report 4.3.1 (9 of 2010)

Gist of the Para

Status of the Para

Failure to devise internal controls in entering & executing contracts with business associates

The Audit Office has furnished the vetting remarks on the ATNs sent by the Ministry. The Audit Office vide their letter dated June 2012 has stated that in view of the sub-judice nature of the case. ATNs be retained till the finality is reached. DoC has directed STCL vide letter dated 2.7.2012 and reminder dt. 2.5.2013 to pursue with the concerned authorities for early finalization of the cases. F.No.8/1/2010-FT(ST)/C.F.No.36319

4.1 (CA 3 of 2011-12)

Iron Ore Business Segment.- The Audit Office has furnished the STCL Ltd. vetting remarks on the ATNs sent by the Ministry. The Audit office vide their letter dated 28.5.2012 has stated that in view of the subjudice nature of the case, ATNs be retained till the finality is reached. DOC has directed STCL vide letter dated 2.7.2012 and reminder dt. 2.5.13 to pursue with the concerned authorities for early finalization of the cases. F.No.8/1/2011-FT(ST)/C.F.No.45500

4.1 (8 of 2012)13 (New Addition)

Annual Report 2013-14

Irregularities in release of funds ATN sent to audit on 25.3.2013 for to a business associate their vetted comments. The audit has stated that since the cases are sub-judice and the amount is yet to be recovered, it is proposed to retain the ATN until a finality is reached.

307

Statement showing the Pending MMTC. Audit Paragraphs (Commercial) Pending as on 9.5.2014 Sl. No.

Para No. & Report

13.2.1 (24 of 2010)

Excess expenditure due to Revised ATN has been submitted incorrect regulation of leave to audit on 6.5.2013 for vetted encashment. comments.

4.2.1(9 of 2010

Loss of Rs. 2.14 Crore Due to This Department had conveyed to the delay in disposal of Zinc. C&AG that the matter is sub judice vide letter dated 11.12.12 vide letter dated 1.3.13, O/o CAG conveyed that the para need to be pursued further. Accordingly, MMTC has been requested to furnish further updates in the matter (matter is subjudice).

308

Gist of the Para

Status of the Para

5.1 Non-recovery of dues due to Comments of MMTC have been (13 of 2013)- lapses in bullion transactions received and ATN is under Process. New addition and camouflaged accounting. Final ATN is to be submitted by 18.3.2014. 5.2 Imprudent investment in Joint Comments of MMTC have been (13 of 2013) â&#x20AC;&#x201C; Venture with M/s India bulls received and ATN is under Process. New addition Financial Services by MMTC. Final ATN is to be submitted by 18.3.2014.

Annual Report 2013-14

Statement showing the Pending PAC. Audit Paragraphs pending as on 9.5.2014 Sl. No. 1.

Para No. & Gist of the Para Status of the Para Report 62nd Report Special Economic Zones(SEZs)- ATN of para 11 & 15 has been of 15th Lok 3paras(7,11,15) sent to Lok Sabha Secretariat vide Sabha OM No.I.2/3/2012-SEZ dated 30.1.2013.Reply of para No. 7 is pending 82nd Report of Sales & distribution of imported ATN on the paras pertains to 15th Lok Sabha pulses â&#x20AC;&#x201C; 12 paras D/o Commerce has been sent to D/o Consumer Affairs vide OM No.19/1/2012-FT(ST) dated 14.6.2013 to incorporate in final ATN to be sent to Lok Sabha Secretariat. Action pending with D/o Consumer Affairs.

Annual Report 2013-14

309

Appendix II(C) Status/Action Taken on audit observations appears in various reports Sl. No.

Year

No. of Paras/PA reports on which ATNs have been submitted to PAC after vetting by Audit

Details of the Paras/PA reports on which ATNs are pending. No. of ATNs not sent by the Ministry even for the first time

No. of ATN pending with Audit

1998

1(Civil)

2001

1(Civil)

2004

2(Civil)

2006

2(Civil)

2007

1(Commercial)

No. of ATNs No. of ATNs sent but which have returned with been finally observations vetted by audit and Audit is but have been awaiting their submitted by resubmission the Ministry to by the Ministry PAC. 1

1(Civil) 6.

2008

1(Commercial) 2(Civil)

2009

2010

7 (Civil)

3(Commercial)

1(Commercial)

3 (Civil) 9.

2011

11.

310

2012

2013

1 2

1(Commercial) 11 (Civil)

10.

No. of ATNs pending with other reasons

1 5

1(Commercial)

2 1

1(Civil)

13(PAC) Para

2(Commercial)

2(Civil)

Annual Report 2013-14